Reviewing EuroDry (NASDAQ:EDRY) & Euroseas (NASDAQ:ESEA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Euroseas	53.75%	28.56%	17.10%
EuroDry	-28.64%	-12.65%	-6.21%

Institutional and Insider Ownership

6.3% of Euroseas shares are owned by institutional investors. Comparatively, 2.4% of EuroDry shares are owned by institutional investors. 55.9% of Euroseas shares are owned by insiders. Comparatively, 51.4% of EuroDry shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Euroseas has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, EuroDry has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Euroseas and EuroDry, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euroseas	0	0	1	0	3.00
EuroDry	0	2	0	0	2.00

Euroseas presently has a consensus target price of $62.00, suggesting a potential upside of 0.10%. Given Euroseas’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Euroseas is more favorable than EuroDry.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Euroseas	$212.90 million	2.04	$112.78 million	$17.02	3.64
EuroDry	$61.08 million	N/A	-$12.61 million	($5.20)	-2.22

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

Summary

Euroseas beats EuroDry on 12 of the 13 factors compared between the two stocks.

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.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.