Genco Shipping & Trading (NYSE:GNK) vs. Caravelle International Group (NASDAQ:CACO) Critical Contrast

Caravelle International Group (NASDAQ:CACO) and Genco Shipping & Trading (NYSE:GNK) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Caravelle International Group and Genco Shipping & Trading”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caravelle International Group	$95.26 million	1.97	-$9.33 million	N/A	N/A
Genco Shipping & Trading	$439.33 million	1.42	-$12.87 million	$1.57	9.32

Caravelle International Group has higher earnings, but lower revenue than Genco Shipping & Trading.

Insider and Institutional Ownership

0.2% of Caravelle International Group shares are held by institutional investors. Comparatively, 58.6% of Genco Shipping & Trading shares are held by institutional investors. 2.5% of Genco Shipping & Trading shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Caravelle International Group and Genco Shipping & Trading, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caravelle International Group	0	0	0	0	0.00
Genco Shipping & Trading	0	1	4	0	2.80

Genco Shipping & Trading has a consensus target price of $24.20, indicating a potential upside of 65.30%. Given Genco Shipping & Trading’s stronger consensus rating and higher probable upside, analysts plainly believe Genco Shipping & Trading is more favorable than Caravelle International Group.

Profitability

This table compares Caravelle International Group and Genco Shipping & Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caravelle International Group	N/A	N/A	N/A
Genco Shipping & Trading	15.63%	8.46%	7.15%

Risk and Volatility

Caravelle International Group has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, Genco Shipping & Trading has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Summary

Genco Shipping & Trading beats Caravelle International Group on 10 of the 12 factors compared between the two stocks.

About Caravelle International Group

Caravelle International Group, through its subsidiaries, provides ocean transportation services in Singapore and internationally. The company operates through two segments, Ocean Transportation and Heating Business. It provides international shipping services and carbon-neutral solutions for wood desiccation. The company also provides seaborne transportation services under the voyage contracts. In addition, it provides vessel services on behalf of ship owners. The company is headquartered in Singapore.

About Genco Shipping & Trading

Genco Shipping & Trading Ltd. is an international ship owning company, which engages in the transportation of iron ore, coal, grain, steel products, and other drybulk cargoes. The company was founded on September 27, 2004 and is headquartered in New York, NY.