The shipping industry has been gradually recovering thanks to rising demand for commodities and an increase in international trade as several economies resume their manufacturing and industrial activities. Consequently, we think two major players in the shipping industry—Castor Maritime (CTRM) and Costamare (NYSE:CMRE)—are expected to benefit in the coming months. But which of these two stocks is a better 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 seaborne transportation services for dry bulk cargo, including iron ore, coal, grains, and steel products. CMRE is an international owner of containerships. The Monaco-based company provides marine transportation services worldwide by chartering its container vessels to liner operators under long-, medium-, and short-term time charters.
Most shipping companies were hit severely by the COVID-19 pandemic as travel-related restrictions and a decline in international trade brought the industry to a near halt. However, as major economies across the globe resume manufacturing and infrastructure activities, the demand for commodities such as iron ore and coal—which are transported primarily by sea—is increasing. With continued progress on the coronavirus vaccination front worldwide and reduced COVID-19 cases, this trend is expected to continue. According to Globe Newswire, the global dry bulk shipping market is expected to grow at a 5.10% CAGR between 2020 - 2027.Both CMRE and CTRM should witness increasing demand for their services as a result.
While CMRE has gained 123.2% over the past nine months, CTRM has returned 122.2%. However, in terms of their past six months’ performance, CTRM is a clear winner with 97.1% returns versus CMRE’s 49.9%. But which of these two stocks is a better pick now? Let's find out.