What shipping stock is a better buy? By StockNews
© Reuters. Castor Maritime vs Costamare: Which shipping stock is a better buy?
The maritime transport industry is gradually recovering thanks to a growing demand for raw materials and an increase in international trade as several economies resume their manufacturing and industrial activities. Therefore, we believe that two major players in the shipping industry – Castor Maritime (CTRM) and Costamare (NYSE 🙂 – should benefit in the coming months. But which of these two titles is the best buy now? Let’s find out. Castor Maritime Inc. (CTRM) and Costamare Inc . (CMRE) are two established players in the shipping industry. Based in Limassol, Cyprus, CTRM provides maritime transport services for dry bulk cargo, including iron ore, coal, grains and steel products. CMRE is an international container ship owner. The Monaco-based company provides maritime transport services around the world by chartering its container ships to line operators on long, medium and short term charters.
Most shipping companies have been hit hard by the COVID-19 pandemic, as travel restrictions and declining international trade have nearly brought the industry to a halt. However, as the world’s major economies resume manufacturing and infrastructure activities, the demand for commodities such as iron ore and coal, which are mostly transported by sea, is increasing. With continued progress on the coronavirus vaccination front around the world and the reduction in COVID-19 cases, this trend is expected to continue. According to Globe Newswire, the global dry bulk transportation market is expected to grow at a CAGR of 5.10% between 2020 and 2027. As a result, CMRE and CTRM are expected to experience increasing demand for their services.
While CMRE has gained 123.2% in the past nine months, CTRM has returned 122.2%. However, in terms of performance over the past six months, CTRM is a clear winner with returns of 97.1% versus 49.9% for CMRE. But which of these two titles is the better choice now? Let’s find out.
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