Critical Comparison: EuroDry (NASDAQ:EDRY) versus Heidmar Maritime (NASDAQ:HMR)

EuroDry (NASDAQ:EDRY) and Heidmar Maritime (NASDAQ:HMR) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Volatility & Risk

EuroDry has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Heidmar Maritime has a beta of -2.36, indicating that its stock price is 336% less volatile than the S&P 500.

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for EuroDry and Heidmar Maritime, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroDry	1	0	1	1	2.67
Heidmar Maritime	2	0	1	0	1.67

EuroDry presently has a consensus target price of $23.50, indicating a potential upside of 25.67%. Heidmar Maritime has a consensus target price of $3.00, indicating a potential upside of 247.46%. Given Heidmar Maritime’s higher possible upside, analysts clearly believe Heidmar Maritime is more favorable than EuroDry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EuroDry	-8.16%	-6.83%	-3.31%
Heidmar Maritime	-40.20%	-19.19%	-6.17%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroDry	$52.26 million	1.03	-$4.26 million	($1.57)	-11.91
Heidmar Maritime	$55.85 million	0.90	-$22.56 million	($0.39)	-2.21

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

Summary

EuroDry beats Heidmar Maritime on 10 of the 14 factors compared between the two stocks.

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.

About Heidmar Maritime

Heidmar Maritime Holdings Corp. provides commercial and pool management services to the dry bulk, crude oil, and refined petroleum product tanker markets worldwide. It offers tanker pool and commercial management, dry bulk pool and commercial management, and fuel services. The company also operates a platform to invest in tanker or drybulk vessels offering a range of customized services for the investor, as well as engages in the sale and purchase of second-hand vessels and newbuilds in the tanker and drybulk sectors. In addition, it develops and operates eFleetWatch, a digital platform in the commercial management space, which provides pool partners with access to the data that they require for their own reporting and monitoring of their vessels. The company was founded in 1984 and is based in Piraeus, Greece.