Nippon Yusen Kabushiki Kaisha (OTCMKTS:NPNYY – Get Free Report) and Global Ship Lease (NYSE:GSL – Get Free Report) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Risk & Volatility
Nippon Yusen Kabushiki Kaisha has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Global Ship Lease has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Earnings and Valuation
This table compares Nippon Yusen Kabushiki Kaisha and Global Ship Lease”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nippon Yusen Kabushiki Kaisha | $17.00 billion | 0.78 | $1.51 billion | $0.96 | 6.39 |
| Global Ship Lease | $747.04 million | 1.75 | $353.63 million | $11.14 | 3.28 |
Nippon Yusen Kabushiki Kaisha has higher revenue and earnings than Global Ship Lease. Global Ship Lease is trading at a lower price-to-earnings ratio than Nippon Yusen Kabushiki Kaisha, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
50.1% of Global Ship Lease shares are owned by institutional investors. 7.4% of Global Ship Lease shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Nippon Yusen Kabushiki Kaisha and Global Ship Lease, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nippon Yusen Kabushiki Kaisha | 0 | 1 | 0 | 0 | 2.00 |
| Global Ship Lease | 0 | 1 | 2 | 1 | 3.00 |
Global Ship Lease has a consensus price target of $33.50, suggesting a potential downside of 8.18%. Given Global Ship Lease’s stronger consensus rating and higher possible upside, analysts plainly believe Global Ship Lease is more favorable than Nippon Yusen Kabushiki Kaisha.
Dividends
Nippon Yusen Kabushiki Kaisha pays an annual dividend of $0.19 per share and has a dividend yield of 3.1%. Global Ship Lease pays an annual dividend of $2.50 per share and has a dividend yield of 6.9%. Nippon Yusen Kabushiki Kaisha pays out 19.8% of its earnings in the form of a dividend. Global Ship Lease pays out 22.4% 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. Global Ship Lease has raised its dividend for 2 consecutive years. Global Ship Lease is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Nippon Yusen Kabushiki Kaisha and Global Ship Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nippon Yusen Kabushiki Kaisha | 12.71% | 10.11% | 6.82% |
| Global Ship Lease | 53.62% | 23.98% | 14.94% |
Summary
Global Ship Lease beats Nippon Yusen Kabushiki Kaisha on 13 of the 18 factors compared between the two stocks.
About Nippon Yusen Kabushiki Kaisha
Nippon Yusen Kabushiki Kaisha provides various logistics services worldwide. It operates through Liner & Logistics Business, Bulk Shipping Business, and Other Business segments. The company offers liner trading services, such as container shipping, and terminal and stevedoring services for containerships, car carriers, and cruise ships; and air cargo transportation services. It also provides bulk shipping services comprising transport services for finished automobiles, heavy construction machines, and used cars; transportation services for bulk freight, including iron ore, coal, and wood chips; and transportation services for crude oil, petroleum products, chemicals, liquefied petroleum gas, liquefied natural gas, and coal. In addition, the company is involved in the upstream areas of the supply chain for oil and natural gas. Further, it operates Asuka II, a luxury cruise ship; and manages commercial and residential buildings. Nippon Yusen Kabushiki Kaisha was incorporated in 1885 and is headquartered in Tokyo, Japan.
About Global Ship Lease
Global Ship Lease, Inc., together with its subsidiaries, engages in owning and chartering of containerships under fixed-rate charters to container shipping companies worldwide. As of March 11, 2024, it owned 68 mid-sized and smaller containerships, ranging from 2,207 to 11,040 twenty-foot equivalent unit (TEU), with an aggregate capacity of 375,406 TEU. The company was founded in 2007 and is based in Athens, Greece.
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