Euroseas (NASDAQ:ESEA) versus Matson (NYSE:MATX) Financial Contrast

Matson (NYSE:MATX) and Euroseas (NASDAQ:ESEA) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Volatility & Risk

Matson has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Profitability

This table compares Matson and Euroseas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matson	13.41%	16.94%	10.01%
Euroseas	58.31%	27.55%	17.82%

Dividends

Matson pays an annual dividend of $1.52 per share and has a dividend yield of 0.7%. Euroseas pays an annual dividend of $3.20 per share and has a dividend yield of 4.5%. Matson pays out 10.2% of its earnings in the form of a dividend. Euroseas pays out 16.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Matson has increased its dividend for 13 consecutive years and Euroseas has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Matson and Euroseas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matson	0	0	4	1	3.20
Euroseas	0	2	1	0	2.33

Matson currently has a consensus price target of $232.33, suggesting a potential upside of 14.36%. Given Matson’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Matson is more favorable than Euroseas.

Insider & Institutional Ownership

84.8% of Matson shares are owned by institutional investors. Comparatively, 6.3% of Euroseas shares are owned by institutional investors. 2.5% of Matson shares are owned by company insiders. Comparatively, 55.9% of Euroseas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Matson and Euroseas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matson	$3.34 billion	1.82	$444.80 million	$14.96	13.58
Euroseas	$227.36 million	2.22	$136.97 million	$18.98	3.78

Matson has higher revenue and earnings than Euroseas. Euroseas is trading at a lower price-to-earnings ratio than Matson, indicating that it is currently the more affordable of the two stocks.

Summary

Matson beats Euroseas on 11 of the 18 factors compared between the two stocks.

About Matson

Matson, Inc., together with its subsidiaries, engages in the provision of ocean transportation and logistics services. It operates through two segments, Ocean Transportation and Logistics. The Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Japan, Alaska, and Guam, as well as to other island economies in Micronesia. It primarily transports dry containers of mixed commodities, refrigerated commodities, food products, beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, e-commerce, and other retail merchandise. This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, it offers vessel management and container transshipment services. The Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load consolidation and freight forwarding services; warehousing and distribution services; supply chain management services, and non-vessel operating common carrier freight forwarding services. It serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers, and other customers. The company was formerly known as Alexander & Baldwin Holdings, Inc. and changed its name to Matson, Inc. in June 2012. Matson, Inc. was founded in 1882 and is headquartered in Honolulu, Hawaii.

About Euroseas

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables. As of March 31, 2024, it had a fleet of 20 containerships with a cargo carrying capacity of approximately 777,749 dwt. The company was incorporated in 2005 and is based in Marousi, Greece.