Better Buy: Seaspan Corporation vs. Diana Shipping Inc.
Seaspan Corporation (NYSE: SSW) and Diana Shipping (NYSE: DSX) have gone in opposite directions this year. Seaspan has lost more than 35% of its value while Diana Shipping's stock has surged nearly 40%. That divergent performance makes sense in the context of their financial results. In Diana Shipping's case, revenue is up 31% while its net loss shrank significantly. Seaspan's revenue, on the other hand, has declined 7% while normalized earnings per share are down 45%.
That said, it's worth noting that Seaspan has continued making money despite the weakness in the shipping sector. And its profitability could rise sharply in the coming year given the recent additions to its fleet and its visible upside potential from higher lease rates. While Diana Shipping has similar upside, if not more, its visibility is nowhere near as clear as Seaspan's.
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Source: Fool.com
