Head-To-Head Review: Golden Ocean Group (NASDAQ:GOGL) and Keppel (OTCMKTS:KPELY)

Golden Ocean Group (NASDAQ:GOGL) and Keppel (OTCMKTS:KPELY) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Dividends

Golden Ocean Group pays an annual dividend of $0.20 per share and has a dividend yield of 2.5%. Keppel pays an annual dividend of $0.46 per share and has a dividend yield of 3.5%. Golden Ocean Group pays out 35.1% of its earnings in the form of a dividend.

Profitability

This table compares Golden Ocean Group and Keppel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Ocean Group	13.16%	5.56%	3.08%
Keppel	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Golden Ocean Group and Keppel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Ocean Group	0	2	0	0	2.00
Keppel	0	0	0	1	4.00

Golden Ocean Group presently has a consensus price target of $10.25, suggesting a potential upside of 28.45%. Given Golden Ocean Group’s higher probable upside, equities analysts plainly believe Golden Ocean Group is more favorable than Keppel.

Institutional and Insider Ownership

22.0% of Golden Ocean Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Golden Ocean Group has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Keppel has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Golden Ocean Group and Keppel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Ocean Group	$968.42 million	1.64	$223.21 million	$0.57	14.00
Keppel	$4.94 billion	2.39	$712.27 million	N/A	N/A

Keppel has higher revenue and earnings than Golden Ocean Group.

Summary

Keppel beats Golden Ocean Group on 7 of the 13 factors compared between the two stocks.

About Golden Ocean Group

Golden Ocean Group Limited, a shipping company, owns and operates a fleet of dry bulk vessels worldwide. The company’s dry bulk vessels comprise Newcastlemax, Capesize, and Panamax vessels operating in the spot and time charter markets. It also transports a range of bulk commodities, including ores, coal, grains, and fertilizers. As of March 20, 2024, the company owned a fleet of 83 dry bulk vessels. Golden Ocean Group Limited is based in Hamilton, Bermuda.

About Keppel

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.