Scorpio Bulkers (SALT) & DryShips (DRYS) Critical Review

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

Analyst Ratings

This is a breakdown of recent ratings for Scorpio Bulkers and DryShips, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Scorpio Bulkers02302.60
DryShips0000N/A

Scorpio Bulkers presently has a consensus price target of $10.70, suggesting a potential upside of 43.62%. Given Scorpio Bulkers’ higher probable upside, equities analysts plainly believe Scorpio Bulkers is more favorable than DryShips.

Dividends

Scorpio Bulkers pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. DryShips pays an annual dividend of $0.10 per share and has a dividend yield of 3.0%. Scorpio Bulkers pays out -2.4% of its earnings in the form of a dividend. DryShips pays out 0.0% 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.

Institutional and Insider Ownership

41.0% of Scorpio Bulkers shares are held by institutional investors. Comparatively, 2.2% of DryShips shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endow....

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