Hoegh LNG Partners (NYSE: TNK) and Teekay Tankers (NYSE:TNK) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Hoegh LNG Partners pays an annual dividend of $1.76 per share and has a dividend yield of 9.8%. Teekay Tankers pays an annual dividend of $0.06 per share and has a dividend yield of 5.8%. Hoegh LNG Partners pays out 129.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teekay Tankers pays out -54.5% of its earnings in the form of a dividend. Hoegh LNG Partners has raised its dividend for 2 consecutive years. Hoegh LNG Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and price targets for Hoegh LNG Partners and Teekay Tankers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hoegh LNG Partners||0||2||4||0||2.67|
Hoegh LNG Partners presently has a consensus target price of $20.75, suggesting a potential upside of 15.92%. Teekay Tankers has a consensus target price of $1.65, suggesting a potential upside of 60.19%. Given Teekay Tankers’ higher possible upside, analysts clearly believe Teekay Tankers is more favorable than Hoegh LNG Partners.
Institutional and Insider Ownership
30.4% of Hoegh LNG Partners shares are owned by institutional investors. Comparatively, 30.2% of Teekay Tankers shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Hoegh LNG Partners has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.
Valuation and Earnings
This table compares Hoegh LNG Partners and Teekay Tankers’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hoegh LNG Partners||$143.53 million||4.13||$48.78 million||$1.36||13.16|
|Teekay Tankers||$431.18 million||0.64||-$58.02 million||($0.11)||-9.36|
Hoegh LNG Partners has higher earnings, but lower revenue than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than Hoegh LNG Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Hoegh LNG Partners and Teekay Tankers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hoegh LNG Partners||39.78%||11.64%||4.45%|
Hoegh LNG Partners beats Teekay Tankers on 12 of the 16 factors compared between the two stocks.
Hoegh LNG Partners Company Profile
Höegh LNG Partners LP focuses on owning, operating, and acquiring floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers, and other LNG infrastructure assets under long-term charters. The company also offers ship management services. As of March 31, 2018, it had a fleet of five FSRUs. Höegh LNG GP LLC is the general partner of the company. The company was founded in 2014 and is headquartered in Hamilton, Bermuda. Höegh LNG Partners LP is a subsidiary of Höegh LNG Holdings Ltd.
Teekay Tankers Company Profile
Teekay Tankers Ltd. provides marine transportation services to oil industries in Bermuda and internationally. The company operates through two segments, Conventional Tanker and Ship-To-Ship Transfer. It is involved in the marine transportation of crude oil and refined petroleum products through the operation of its oil and product tankers. The company also provides ship-to-ship transfer services, including lightering and lightering support, consultancy, and LNG terminal management services. As of December 31, 2017, it operated a fleet of 52 owned conventional tankers, 4 conventional tankers related to capital leases, 1 in-chartered vessel, and 1 jointly-owned very large crude carrier; and 6 ship-to-ship support vessels. The company's vessels operated under fixed-rate time charter contracts with its customers. Teekay Tankers Ltd. was founded in 2007 and is based in Hamilton, Bermuda.
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