Better Buy: Seaspan Corporation vs. Textainer Group Holdings Limited
The container shipping industry has gone through a brutal downturn over the past couple of years. Too much capacity and sluggish global trade sank profitability to such an extent that one of the world's largest shippers collapsed under the weight of its debt. However, industry conditions improved dramatically since that wash-out movement.
That's evident by looking at the recent financial results of container leasing giant Textainer Group Holdings Limited (NYSE: TGH) and container ship charter leader Seaspan Corporation (NYSE: SSW). During the third quarter, for example, Textainer finally returned to profitability while Seaspan's steady recovery continued. That said, while the uptick in market conditions has catapulted Textainer's stock up more than 125% over the past year, Seaspan's has continued to sink, with it down more than 35%. That underperformance suggests Seaspan has much more upside as market conditions keep improving, which is why I think it's the better buy right now.
Image source: Getty Images.
Source: Fool.com
