Contrasting Scorpio Bulkers (NYSE:SALT) & Grindrod Shipping (NYSE:GRIN)

Scorpio Bulkers (NYSE:SALT) and Grindrod Shipping (NASDAQ:GRIN) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Scorpio Bulkers has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Grindrod Shipping has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Scorpio Bulkers and Grindrod Shipping’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scorpio Bulkers -35.88% -9.30% -4.68%
Grindrod Shipping N/A N/A N/A

Valuation & Earnings

This table compares Scorpio Bulkers and Grindrod Shipping’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scorpio Bulkers $224.58 million 0.55 $44.65 million $11.90 1.43
Grindrod Shipping $331.05 million 0.13 N/A N/A N/A

Scorpio Bulkers has higher earnings, but lower revenue than Grindrod Shipping.

Institutional & Insider Ownership

9.0% of Grindrod Shipping shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Scorpio Bulkers and Grindrod Shipping, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scorpio Bulkers 0 1 4 0 2.80
Grindrod Shipping 0 0 2 0 3.00

Scorpio Bulkers presently has a consensus target price of $53.00, suggesting a potential upside of 211.03%. Grindrod Shipping has a consensus target price of $11.55, suggesting a potential upside of 400.00%. Given Grindrod Shipping’s stronger consensus rating and higher possible upside, analysts clearly believe Grindrod Shipping is more favorable than Scorpio Bulkers.

Summary

Grindrod Shipping beats Scorpio Bulkers on 7 of the 10 factors compared between the two stocks.

Scorpio Bulkers Company Profile

Scorpio Bulkers Inc., a shipping company, owns and operates dry bulk carriers worldwide. Its vessels transport a range of bulk commodities, including ores, coal, grains, and fertilizers. The company owns and operates 55 vessels, including 54 wholly-owned or finance leased drybulk vessels comprising 17 Kamsarmax vessels and 37 Ultramax vessels; and 1 time chartered-in Ultramax vessel. Scorpio Bulkers Inc. was founded in 2013 and is based in Monaco.

Grindrod Shipping Company Profile

Grindrod Shipping Holdings Ltd., an international shipping company, owns, charters-in, and operates a fleet of dry bulk carriers and tankers. The company operates in two businesses, Drybulk Carriers and Tankers. It operates a fleet of 24 owned dry bulk carriers and 6 long-term chartered-in dry bulk carriers that transport a range of bulk and breakbulk commodities, including ores, coal, grains, forestry products, steel products, and fertilizers. The company also operates a fleet of 8 owned tankers and 2 long-term chartered-in tankers, which carry petroleum products, petrol, diesel, jet fuel, and naptha, as well as heavy fuel oil; and low hazard chemical products comprising liquid bulk vegetable oils. Its customers include trading houses, mining companies, industrial manufacturing companies, and oil companies, as well as traders of grains, steel, and forestry products. Grindrod Shipping Holdings Ltd. was incorporated in 2017 and is based in Singapore.

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