Critical Survey: COSCO SHIPPING (OTCMKTS:CICOY) and Euroseas (NASDAQ:ESEA)

COSCO SHIPPING (OTCMKTS:CICOY) and Euroseas (NASDAQ:ESEA) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for COSCO SHIPPING and Euroseas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
COSCO SHIPPING	1	2	0	0	1.67
Euroseas	0	1	2	0	2.67

Euroseas has a consensus price target of $62.00, indicating a potential upside of 12.44%. Given Euroseas’ stronger consensus rating and higher possible upside, analysts clearly believe Euroseas is more favorable than COSCO SHIPPING.

Institutional and Insider Ownership

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

Risk and Volatility

COSCO SHIPPING has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Euroseas has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Dividends

COSCO SHIPPING pays an annual dividend of $0.57 per share and has a dividend yield of 6.6%. Euroseas pays an annual dividend of $2.80 per share and has a dividend yield of 5.1%. Euroseas pays out 16.2% of its earnings in the form of a dividend. Euroseas has raised its dividend for 3 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
COSCO SHIPPING	N/A	N/A	N/A
Euroseas	54.01%	27.56%	16.81%

Earnings and Valuation

This table compares COSCO SHIPPING and Euroseas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
COSCO SHIPPING	$32.53 billion	0.85	$6.84 billion	N/A	N/A
Euroseas	$212.90 million	1.82	$112.78 million	$17.32	3.18

COSCO SHIPPING has higher revenue and earnings than Euroseas.

Summary

Euroseas beats COSCO SHIPPING on 10 of the 15 factors compared between the two stocks.

About COSCO SHIPPING

COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, managing and operating container terminals, and other terminal related businesses in the United States, Europe, the Asia Pacific, Mainland China, and internationally. It operates through Container Shipping Business and Terminal Business segments. The company offers freight forwarding and transportation, vessel chartering, container transportation, marine, vessel management and manning, cargo and liner agency, logistics, document, shipping agency and other sea transport, container stack, cargo storage, and cargo transportation services. It is also involved in the design and manufacture of computer software, as well as provision of technology services and solutions; asset management business; and operation of terminals. The company was formerly known as China COSCO Holdings Company Limited and changed its name to COSCO SHIPPING Holdings Co., Ltd. in November 2016. COSCO SHIPPING Holdings Co., Ltd. was incorporated in 2005 and is based in Shanghai, the People’s Republic of China.

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.