Teekay (NYSE:TK) and Its Peers Critical Comparison

Teekay (NYSE: TK) is one of 44 publicly-traded companies in the “Deep sea foreign transportation of freight” industry, but how does it weigh in compared to its peers? We will compare Teekay to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Institutional & Insider Ownership

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27.1% of Teekay shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Deep sea foreign transportation of freight” companies are owned by institutional investors. 2.4% of Teekay shares are owned by company insiders. Comparatively, 23.8% of shares of all “Deep sea foreign transportation of freight” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Teekay pays an annual dividend of $0.22 per share and has a dividend yield of 2.7%. Teekay pays out -15.9% of its earnings in the form of a dividend. As a group, “Deep sea foreign transportation of freight” companies pay a dividend yield of 7.4% and pay out 409.4% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Teekay and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Teekay $1.88 billion -$151.71 million -5.90
Teekay Competitors $311.95 million -$36.87 million -6.11

Teekay has higher revenue, but lower earnings than its peers. Teekay is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings for Teekay and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay 1 2 0 0 1.67
Teekay Competitors 333 878 1001 10 2.31

Teekay presently has a consensus price target of $7.00, indicating a potential downside of 14.00%. As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 46.28%. Given Teekay’s peers stronger consensus rating and higher possible upside, analysts plainly believe Teekay has less favorable growth aspects than its peers.

Profitability

This table compares Teekay and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay -8.05% -3.36% -1.08%
Teekay Competitors -19.92% 2.23% -0.48%

Volatility and Risk

Teekay has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Teekay’s peers have a beta of 1.26, indicating that their average stock price is 26% more volatile than the S&P 500.

Summary

Teekay peers beat Teekay on 10 of the 15 factors compared.

About Teekay

Teekay Corporation (Teekay) is a provider of crude oil and gas marine transportation services. The Company also offers offshore oil production, storage and offloading services, primarily under long-term, fixed-rate contracts. The Company is engaged in the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipping sectors, as well as in the operations in the offshore production, storage and transportation sector. It is also involved in the conventional tanker business. Teekay provides a set of marine services to the oil and gas companies. The Company has four lines of business: offshore logistics (shuttle tankers, the HiLoad DP unit, floating storage and off-take (FSO) units, units for maintenance and safety (UMS), and long-distance towing and offshore installation vessels), offshore production (floating production, storage and offloading (FPSO) units), liquefied gas carriers and conventional tankers.

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