Hornbeck Offshore Services (NYSE: HOS) and Diana Containerships (NASDAQ:DCIX) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitabiliy, analyst recommendations and dividends.
Insider & Institutional Ownership
97.5% of Hornbeck Offshore Services shares are owned by institutional investors. Comparatively, 30.0% of Diana Containerships shares are owned by institutional investors. 7.1% of Hornbeck Offshore Services shares are owned 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 Ratings
This is a summary of current recommendations and price targets for Hornbeck Offshore Services and Diana Containerships, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hornbeck Offshore Services | 1 | 3 | 0 | 0 | 1.75 |
| Diana Containerships | 0 | 0 | 1 | 0 | 3.00 |
Hornbeck Offshore Services currently has a consensus target price of $6.00, suggesting a potential upside of 138.10%. Diana Containerships has a consensus target price of $336.00, suggesting a potential upside of 67,234.67%. Given Diana Containerships’ stronger consensus rating and higher probable upside, analysts clearly believe Diana Containerships is more favorable than Hornbeck Offshore Services.
Valuation and Earnings
This table compares Hornbeck Offshore Services and Diana Containerships’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Hornbeck Offshore Services | $191.56 million | 0.48 | $23.47 million | ($2.31) | -1.09 |
| Diana Containerships | $22.70 million | 0.01 | -$8.54 million | ($549.59) | 0.00 |
Hornbeck Offshore Services has higher revenue and earnings than Diana Containerships. Hornbeck Offshore Services is trading at a lower price-to-earnings ratio than Diana Containerships, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hornbeck Offshore Services and Diana Containerships’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hornbeck Offshore Services | -43.97% | -5.96% | -2.91% |
| Diana Containerships | -467.42% | -27.46% | -10.57% |
Risk & Volatility
Hornbeck Offshore Services has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Diana Containerships has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.
Summary
Hornbeck Offshore Services beats Diana Containerships on 9 of the 13 factors compared between the two stocks.
Hornbeck Offshore Services Company Profile
Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.
Diana Containerships Company Profile
Diana Containerships Inc. is a holding company. The Company, through its subsidiaries, is engaged in the ownership of containerships. As of December 31, 2016, the Company’s fleet consisted of six panamax and six post-panamax containerships with a combined carrying capacity of 61,517 twenty-foot equivalent unit (TEU). As of December 31, 2016, the Company’s fleet included SAGITTA, CENTAURUS, NEW JERSEY, PAMINA, DOMINGO, DOUKATO, PUELO, PUCON, MARCH, GREAT and HAMBURG. The Company’s customers include national, regional and international companies. The Company charters its vessels to customers primarily pursuant to short-term and long-term time charters. As of December 31, 2016, its subsidiaries included Likiep Shipping Company Inc., Orangina Inc., Rongerik Shipping Company Inc., Dud Shipping Company Inc., Mago Shipping Company Inc., Eluk Shipping Company Inc., Oruk Shipping Company Inc., Meck Shipping Company Inc., Langor Shipping Company Inc. and Unitized Ocean Transport Limited.
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