World Point Terminals (WPT) and Ship Finance International (NYSE:SFL) Head to Head Analysis

World Point Terminals (NYSE: WPT) and Ship Finance International (NYSE:SFL) are both small-cap companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Analyst Recommendations

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This is a summary of current recommendations for World Point Terminals and Ship Finance International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Point Terminals 0 1 0 0 2.00
Ship Finance International 1 2 1 0 2.00

World Point Terminals presently has a consensus price target of $17.00, indicating a potential downside of 1.68%. Ship Finance International has a consensus price target of $14.75, indicating a potential upside of 3.15%. Given Ship Finance International’s higher probable upside, analysts clearly believe Ship Finance International is more favorable than World Point Terminals.

Earnings and Valuation

This table compares World Point Terminals and Ship Finance International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
World Point Terminals N/A N/A N/A N/A N/A
Ship Finance International $380.88 million 3.86 $101.20 million $1.19 12.02

Ship Finance International has higher revenue and earnings than World Point Terminals.

Institutional and Insider Ownership

13.2% of World Point Terminals shares are held by institutional investors. Comparatively, 33.7% of Ship Finance International shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Ship Finance International pays an annual dividend of $1.40 per share and has a dividend yield of 9.8%. Ship Finance International pays out 117.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ship Finance International has raised its dividend for 6 consecutive years. Ship Finance International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares World Point Terminals and Ship Finance International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Point Terminals 37.15% 19.57% 18.37%
Ship Finance International 26.57% 10.08% 3.69%

Volatility and Risk

World Point Terminals has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Ship Finance International has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

Ship Finance International beats World Point Terminals on 7 of the 11 factors compared between the two stocks.

About World Point Terminals

World Point Terminals, LP owns, operates, develops and acquires liquid bulk storage terminals and other assets relating to the storage of petroleum products, including light refined products, heavy refined products and crude oil. The Company operates fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States. As of December 31, 2016, through its subsidiary, Center Point Terminal Company, LLC (Center Point), the Company owned and operated 15.6 million barrels of tankage at terminals, which are located in the East Coast, Gulf Coast and Midwest regions of the United States. The Company’s terminal facilities are located on waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with loading logistics. Its terminal facilities also have rail or pipeline access.

About Ship Finance International

Ship Finance International Limited owns and operates vessels and offshore related assets primarily in Bermuda, Cyprus, Malta, Liberia, Norway, the United Kingdom, and the Marshall Islands. It is also involved in the charter, purchase, and sale of assets. In addition, the company operates in various sectors of the shipping and offshore industry, including oil transportation, dry bulk shipments, chemical transportation, oil product transportation, container transportation, car transportation, drilling rigs, and offshore supply vessels. As of April 13, 2017, it had a fleet of 14 crude oil tankers, 22 dry bulk carriers, 22 container vessels, 2 car carriers, 2 jack-up drilling rigs, 2 ultra-deepwater drilling units, 5 offshore supply vessels, 2 chemical tankers, and 2 newbuilding oil product tankers. The company was founded in 2003 and is based in Hamilton, Bermuda.

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