Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) and Safe Bulkers (NYSE:SB) Critical Analysis

Safe Bulkers (NYSE:SB) and Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

21.7% of Safe Bulkers shares are owned by institutional investors. 40.3% of Safe Bulkers shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Safe Bulkers has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Ultrapetrol (Bahamas) has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Safe Bulkers and Ultrapetrol (Bahamas)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safe Bulkers	33.17%	11.58%	6.92%
Ultrapetrol (Bahamas)	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Safe Bulkers and Ultrapetrol (Bahamas), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safe Bulkers	0	0	1	0	3.00
Ultrapetrol (Bahamas)	0	0	0	0	0.00

Safe Bulkers currently has a consensus price target of $6.00, indicating a potential upside of 64.84%. Given Safe Bulkers’ stronger consensus rating and higher probable upside, analysts plainly believe Safe Bulkers is more favorable than Ultrapetrol (Bahamas).

Valuation & Earnings

This table compares Safe Bulkers and Ultrapetrol (Bahamas)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safe Bulkers	$318.43 million	1.22	$77.35 million	$0.90	4.04
Ultrapetrol (Bahamas)	N/A	N/A	N/A	N/A	N/A

Safe Bulkers has higher revenue and earnings than Ultrapetrol (Bahamas).

Summary

Safe Bulkers beats Ultrapetrol (Bahamas) on 9 of the 10 factors compared between the two stocks.

About Safe Bulkers

Safe Bulkers, Inc., together with its subsidiaries, provides marine drybulk transportation services. It owns and operates drybulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore. The company has a fleet of 47 drybulk vessels having an aggregate carrying capacity of 4,719,600 deadweight tons. Its fleet consists of 10 Panamax class vessels, 11 Kamsarmax class vessels, 18 post-Panamax class vessels, and 8 Capesize class vessels. Safe Bulkers, Inc. was incorporated in 2007 and is based in Monaco.

About Ultrapetrol (Bahamas)

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Europe, Central America, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. The River Business segment owns and operates dry and tanker barges, and push boats in the Hidrovia region of South America. Its dry barges transport agricultural and forestry products, iron ore, and other cargoes; and tanker barges carry petroleum products, vegetable oils, and other liquids. As of December 31, 2015, this segment had 681 barges with approximately 1.3 million dwt capacity; and 34 push boats. The Offshore Supply Business segment owns and operates vessels that provide logistical and transportation services for offshore petroleum exploration and production companies. It transports supplies, such as containerized equipment, drill casings, pipes, and heavy loads; fuel, water, drilling fluids, and bulk cement; and various other supplies to drilling rigs and platforms. This segment's fleet consisted of 13 platform supply vessels and 1 remotely operated vehicle. The Ocean Business segment owns and operates oceangoing vessels, which transports petroleum products, as well as a container line service in the Argentine cabotage trade. The company serves petroleum, agricultural, and mining companies. Ultrapetrol (Bahamas) Limited was founded in 1992 and is headquartered in Nassau, the Bahamas. Ultrapetrol (Bahamas) Limited is a subsidiary of Sparrow Capital Investments Ltd.