Financial Survey: Teekay (TK) vs. The Competition

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

Analyst Recommendations

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This is a summary of current ratings and recommmendations for Teekay and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay 1 2 0 0 1.67
Teekay Competitors 332 878 1001 10 2.31

Teekay currently has a consensus target price of $7.00, suggesting a potential downside of 16.07%. As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 45.41%. Given Teekay’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Teekay has less favorable growth aspects than its competitors.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Teekay $1.88 billion -$151.71 million -6.04
Teekay Competitors $312.90 million -$37.09 million -6.21

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

Dividends

Teekay pays an annual dividend of $0.22 per share and has a dividend yield of 2.6%. 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 7.3% and pay out 409.4% of their earnings in the form of a dividend.

Profitability

This table compares Teekay and its competitors’ 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 -19.96% -4.22% -1.10%

Risk and Volatility

Teekay has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Teekay’s competitors have a beta of 1.25, indicating that their average share price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

27.1% of Teekay shares are held by institutional investors. Comparatively, 45.0% of shares of all “Deep sea foreign transportation of freight” companies are held by institutional investors. 2.4% of Teekay shares are held by insiders. Comparatively, 23.8% of shares of all “Deep sea foreign transportation of freight” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Teekay competitors beat Teekay on 8 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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