Pacific Basin Shipping (OTCMKTS:PCFBF) & Golden Ocean Group (NASDAQ:GOGL) Head-To-Head Survey

Golden Ocean Group (NASDAQ:GOGL) and Pacific Basin Shipping (OTCMKTS:PCFBF) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Golden Ocean Group and Pacific Basin Shipping, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golden Ocean Group	0	2	0	0	2.00
Pacific Basin Shipping	0	0	0	0	N/A

Golden Ocean Group presently has a consensus target price of $14.50, suggesting a potential upside of 21.54%. Given Golden Ocean Group’s higher possible upside, equities research analysts clearly believe Golden Ocean Group is more favorable than Pacific Basin Shipping.

Profitability

This table compares Golden Ocean Group and Pacific Basin Shipping’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golden Ocean Group	22.01%	10.57%	5.79%
Pacific Basin Shipping	N/A	N/A	N/A

Valuation and Earnings

This table compares Golden Ocean Group and Pacific Basin Shipping”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golden Ocean Group	$972.69 million	2.45	$112.27 million	$0.93	12.83
Pacific Basin Shipping	N/A	N/A	N/A	($0.05)	-5.42

Golden Ocean Group has higher revenue and earnings than Pacific Basin Shipping. Pacific Basin Shipping is trading at a lower price-to-earnings ratio than Golden Ocean Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Golden Ocean Group pays an annual dividend of $1.20 per share and has a dividend yield of 10.1%. Pacific Basin Shipping pays an annual dividend of $0.01 per share and has a dividend yield of 2.6%. Golden Ocean Group pays out 129.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pacific Basin Shipping pays out -13.8% of its earnings in the form of a dividend.

Institutional and Insider Ownership

22.0% of Golden Ocean Group shares are held by institutional investors. Comparatively, 37.4% of Pacific Basin Shipping 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.

Summary

Golden Ocean Group beats Pacific Basin Shipping on 8 of the 10 factors compared between the two stocks.

About Golden Ocean Group

Golden Ocean Group Limited, a shipping company, owns and operates a fleet of dry bulk vessels worldwide. The company’s dry bulk vessels comprise Newcastlemax, Capesize, and Panamax vessels operating in the spot and time charter markets. It also transports a range of bulk commodities, including ores, coal, grains, and fertilizers. As of March 20, 2024, the company owned a fleet of 83 dry bulk vessels. Golden Ocean Group Limited is based in Hamilton, Bermuda.

About Pacific Basin Shipping

Pacific Basin Shipping Limited, an investment holding company, engages in the provision of dry bulk shipping services worldwide. The company offers its shipping services that mainly carry major and minor bulks, including grains, ores, logs/forest products, bauxite, sugar, concentrates, cement and clinkers, coal/coke, fertilizers, alumina, steel, pet-coke, salt, sand and gypsum, and scrap. It also offers shipping consulting, crewing, secretarial, and ship agency and management services. In addition, the company is involved in the vessel owning and chartering, and convertible bonds issuing activities. It has a fleet of 266 owned and chartered vessels, including 121 Handysize, 1 Capesize, and 144 Supramax/Ultramax vessels. The company was founded in 1987 and is headquartered in Wong Chuk Hang, Hong Kong.