Grupo TMM SAB (OTCMKTS:GTMAY) and Global Ship Lease (NYSE:GSL) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Institutional and Insider Ownership
1.5% of Grupo TMM SAB shares are held by institutional investors. Comparatively, 37.3% of Global Ship Lease shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Grupo TMM SAB and Global Ship Lease’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grupo TMM SAB||-5.78%||-4.03%||-2.05%|
|Global Ship Lease||-16.69%||10.14%||2.70%|
Risk and Volatility
Grupo TMM SAB has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Global Ship Lease has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Grupo TMM SAB and Global Ship Lease, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grupo TMM SAB||0||0||0||0||N/A|
|Global Ship Lease||0||0||2||0||3.00|
Global Ship Lease has a consensus target price of $12.00, suggesting a potential upside of 40.68%. Given Global Ship Lease’s higher probable upside, analysts clearly believe Global Ship Lease is more favorable than Grupo TMM SAB.
Valuation and Earnings
This table compares Grupo TMM SAB and Global Ship Lease’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Grupo TMM SAB||$79.31 million||0.46||$990,000.00||N/A||N/A|
|Global Ship Lease||$157.10 million||0.95||-$57.36 million||$1.76||4.85|
Grupo TMM SAB has higher earnings, but lower revenue than Global Ship Lease.
Global Ship Lease beats Grupo TMM SAB on 8 of the 10 factors compared between the two stocks.
Grupo TMM SAB Company Profile
Grupo TMM, S.A.B., together with its subsidiaries, operates as a logistics and transportation company in Mexico. It operates in four segments: Maritime, Logistics, Ports and Terminals, and Warehousing. The company offers maritime transportation services, including offshore vessels, which provide transportation and other services to the Mexican offshore oil industry; tankers that transport petroleum products in Mexican waters; parcel tankers, which transport liquid chemical and vegetable oil cargos from and to the United States and Mexico; tugboats that provide towing services at the port of Manzanillo, Mexico; and dry bulk carriers that transport unpackaged commodities, such as steel between South America, the Caribbean, and Mexico. As of March 31, 2018, it operated through a fleet of 39 vessels, which included product and chemical tankers, harbor tugs, and various offshore supply vessels. The company also provides ship repair services through two floating drydocks with a capacity of 3,000 metric tons each; port agent services to vessel owners and operators in the Mexican ports; and warehousing and bonded warehousing facility management services, as well as operates the Tuxpan, Tampico, and Acapulco port facilities. In addition, it offers logistics services, including consulting, analytical, and logistics outsourcing; logistics network analysis; logistics information process design; intermodal transport; supply chain and logistics management; product handling and repackaging; local pre-assembly; container maintenance and repair; and inbound and outbound distribution using various transportation modes to automobile manufacturers and retailers. The company was founded in 1955 and is headquartered in Mexico City, Mexico.
Global Ship Lease Company Profile
Global Ship Lease, Inc. owns and charters containerships of various sizes under fixed-rate charters to container shipping companies. As of December 31, 2018, it owned 38 vessels with a total capacity of 200,615 twenty-foot equivalent units. The company is based in London, the United Kingdom.
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