Reviewing TransMontaigne (TLP) & Its Peers

TransMontaigne (NYSE: TLP) is one of 21 public companies in the “Pipelines, except natural gas” industry, but how does it compare to its competitors? We will compare TransMontaigne to related companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

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This table compares TransMontaigne and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TransMontaigne $183.27 million $48.49 million 18.20
TransMontaigne Competitors $6.57 billion $435.72 million 19.08

TransMontaigne’s competitors have higher revenue and earnings than TransMontaigne. TransMontaigne is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares TransMontaigne and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransMontaigne 24.56% 12.16% 5.83%
TransMontaigne Competitors 31.87% -1.27% 9.40%

Analyst Recommendations

This is a summary of current ratings and target prices for TransMontaigne and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransMontaigne 0 2 3 0 2.60
TransMontaigne Competitors 214 990 1043 28 2.39

TransMontaigne currently has a consensus price target of $49.20, indicating a potential upside of 22.85%. As a group, “Pipelines, except natural gas” companies have a potential upside of 21.30%. Given TransMontaigne’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TransMontaigne is more favorable than its competitors.

Insider & Institutional Ownership

62.0% of TransMontaigne shares are held by institutional investors. Comparatively, 57.1% of shares of all “Pipelines, except natural gas” companies are held by institutional investors. 20.4% of TransMontaigne shares are held by company insiders. Comparatively, 5.9% of shares of all “Pipelines, except natural gas” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

TransMontaigne has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, TransMontaigne’s competitors have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Dividends

TransMontaigne pays an annual dividend of $3.08 per share and has a dividend yield of 7.7%. TransMontaigne pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pipelines, except natural gas” companies pay a dividend yield of 7.9% and pay out 134.2% of their earnings in the form of a dividend. TransMontaigne has increased its dividend for 8 consecutive years. TransMontaigne lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

TransMontaigne competitors beat TransMontaigne on 9 of the 15 factors compared.

TransMontaigne Company Profile

TransMontaigne Partners L.P. provides integrated terminaling, storage, transportation, and related services. The company offers its services to customers engaged in the trading, distribution, and marketing of light and heavy refined petroleum products, crude oil, chemicals, fertilizers, and other liquid products. It operates 8 refined product terminals in Florida with approximately 6.9 million barrels of aggregate active storage capacity; and a 67-mile interstate refined products pipeline between Missouri and Arkansas, as well as 2 refined product terminals in Missouri and Arkansas with an aggregate active storage capacity of approximately 421,000 barrels. The company also operates 1 crude oil terminal in Cushing with an aggregate active storage capacity of approximately 1.0 million barrels; 1 refined product terminal located in Oklahoma City with aggregate active storage capacity of approximately 0.2 million barrels; 1 refined product terminal located in Brownsville with an aggregate active storage capacity of approximately 0.9 million barrels; and a 16-mile LPG pipeline from its Brownsville facility to the U.S. border. In addition, it operates a 174-mile bi-directional refined products and Ella-Brownsville pipelines; light petroleum products terminal located in Brownsville with an aggregate active storage capacity of approximately 1.5 million barrels; 7.1 million barrel terminal facility on the Houston Ship Channel; 12 refined product terminals located along the Mississippi and Ohio rivers with approximately 2.7 million barrels of aggregate active storage capacity; and a dock facility in Baton Rouge, as well as 22 refined product terminals located along the Colonial and Plantation pipelines with an aggregate active storage capacity of approximately 11.0 million barrels. TransMontaigne GP L.L.C. serves as the general partner of the company. The company was founded in 2005 and is headquartered in Denver, Colorado.

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