Analyzing A.P. Moller-Maersk (OTCMKTS:AMKBY) & Seanergy Maritime (NASDAQ:SHIP)

Seanergy Maritime (NASDAQ:SHIP – Get Free Report) and A.P. Moller-Maersk (OTCMKTS:AMKBY – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Seanergy Maritime and A.P. Moller-Maersk, as provided by MarketBeat.com.

Seanergy Maritime presently has a consensus target price of $25.00, indicating a potential upside of 35.80%. Given Seanergy Maritime’s stronger consensus rating and higher possible upside, research analysts plainly believe Seanergy Maritime is more favorable than A.P. Moller-Maersk.

Volatility & Risk

Seanergy Maritime has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, A.P. Moller-Maersk has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Seanergy Maritime and A.P. Moller-Maersk”s gross revenue, earnings per share and valuation.

A.P. Moller-Maersk has higher revenue and earnings than Seanergy Maritime. Seanergy Maritime is trading at a lower price-to-earnings ratio than A.P. Moller-Maersk, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

29.4% of Seanergy Maritime shares are held by institutional investors. 4.7% of Seanergy Maritime shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Seanergy Maritime and A.P. Moller-Maersk’s net margins, return on equity and return on assets.

Dividends

Seanergy Maritime pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. A.P. Moller-Maersk pays an annual dividend of $0.19 per share and has a dividend yield of 1.1%. Seanergy Maritime pays out 28.0% of its earnings in the form of a dividend. A.P. Moller-Maersk pays out 24.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Seanergy Maritime beats A.P. Moller-Maersk on 12 of the 16 factors compared between the two stocks.

About Seanergy Maritime

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Seanergy Maritime Holdings Corp., a shipping company, provides seaborne transportation of dry bulk commodities worldwide. It operates a fleet of 16 Capesize dry bulk vessels and one Newcastlemax dry bulk vessel with a cargo-carrying capacity of approximately 3,054,820 dwt. The company was formerly known as Seanergy Merger Corp. and changed its name to Seanergy Maritime Holdings Corp. in July 2008. Seanergy Maritime Holdings Corp. was incorporated in 2008 and is based in Glyfada, Greece.

About A.P. Moller-Maersk

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A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.