Matson (NYSE: MATX) and Ultrapetrol (Bahamas) Limited (NASDAQ:ULTR) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitabiliy, risk, analyst recommendations and institutional ownership.
Dividends
Matson pays an annual dividend of $0.76 per share and has a dividend yield of 2.7%. Ultrapetrol (Bahamas) Limited does not pay a dividend. Matson pays out 47.8% of its earnings in the form of a dividend. Ultrapetrol (Bahamas) Limited has increased its dividend for 4 consecutive years.
Earnings and Valuation
This table compares Matson and Ultrapetrol (Bahamas) Limited’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Matson | $1.96 billion | 0.62 | $218.50 million | $1.59 | 17.86 |
| Ultrapetrol (Bahamas) Limited | N/A | N/A | N/A | ($0.47) | -0.11 |
Matson has higher revenue and earnings than Ultrapetrol (Bahamas) Limited. Ultrapetrol (Bahamas) Limited is trading at a lower price-to-earnings ratio than Matson, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
84.1% of Matson shares are held by institutional investors. Comparatively, 4.0% of Ultrapetrol (Bahamas) Limited shares are held by institutional investors. 2.6% of Matson shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Matson and Ultrapetrol (Bahamas) Limited’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Matson | 3.54% | 15.16% | 3.55% |
| Ultrapetrol (Bahamas) Limited | -58.33% | -71.51% | -22.45% |
Risk and Volatility
Matson has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Ultrapetrol (Bahamas) Limited has a beta of 2.39, indicating that its share price is 139% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for Matson and Ultrapetrol (Bahamas) Limited, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Matson | 0 | 2 | 1 | 0 | 2.33 |
| Ultrapetrol (Bahamas) Limited | 0 | 0 | 0 | 0 | N/A |
Matson currently has a consensus price target of $39.00, indicating a potential upside of 37.32%. Given Matson’s higher possible upside, equities analysts plainly believe Matson is more favorable than Ultrapetrol (Bahamas) Limited.
Summary
Matson beats Ultrapetrol (Bahamas) Limited on 10 of the 13 factors compared between the two stocks.
About Ultrapetrol (Bahamas) Limited
Ultrapetrol (Bahamas) Limited is an industrial shipping company serving the marine transportation markets. The Company serves the shipping markets for grain, forest products, minerals, crude oil, petroleum and refined petroleum products, as well as technological products through its container feeder vessels, and the offshore oil platform supply market through its operations in the three segments of the marine transportation industry. The Company’s segments are River Business, Offshore Supply Business and Ocean Business. The Company’s River Business owns and operates river barges and pushboats that transport dry bulk and liquid cargos through the Hidrovia Region of South America. Its Offshore Supply Business owns and operates vessels that provide logistical and transportation services for offshore petroleum exploration and production companies, in the coastal waters of Brazil and the North Sea. In the Ocean Business, the Company operates ocean-going vessels.
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