Reviewing Teekay Lng Partners, L.P. Common Stock (TGP) & Hoegh LNG Partners (HMLP)

Teekay Lng Partners, L.P. Common Stock (NYSE: TGP) and Hoegh LNG Partners (NYSE:HMLP) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Dividends

Teekay Lng Partners, L.P. Common Stock pays an annual dividend of $0.56 per share and has a dividend yield of 3.5%. Hoegh LNG Partners pays an annual dividend of $1.76 per share and has a dividend yield of 10.0%. Teekay Lng Partners, L.P. Common Stock pays out 56.0% of its earnings in the form of a dividend. 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. Hoegh LNG Partners has increased 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.

Profitability

This table compares Teekay Lng Partners, L.P. Common Stock and Hoegh LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay Lng Partners, L.P. Common Stock 6.38% 6.08% 2.06%
Hoegh LNG Partners 39.78% 11.64% 4.45%

Insider & Institutional Ownership

35.6% of Teekay Lng Partners, L.P. Common Stock shares are owned by institutional investors. Comparatively, 30.8% of Hoegh LNG Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Teekay Lng Partners, L.P. Common Stock and Hoegh LNG Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teekay Lng Partners, L.P. Common Stock $432.68 million 2.98 $33.96 million $1.00 16.20
Hoegh LNG Partners $143.53 million 4.07 $48.78 million $1.36 12.98

Hoegh LNG Partners has lower revenue, but higher earnings than Teekay Lng Partners, L.P. Common Stock. Hoegh LNG Partners is trading at a lower price-to-earnings ratio than Teekay Lng Partners, L.P. Common Stock, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Teekay Lng Partners, L.P. Common Stock has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Hoegh LNG Partners has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Teekay Lng Partners, L.P. Common Stock and Hoegh LNG Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay Lng Partners, L.P. Common Stock 0 4 1 0 2.20
Hoegh LNG Partners 0 0 5 0 3.00

Teekay Lng Partners, L.P. Common Stock presently has a consensus target price of $19.70, suggesting a potential upside of 21.60%. Hoegh LNG Partners has a consensus target price of $21.00, suggesting a potential upside of 18.98%. Given Teekay Lng Partners, L.P. Common Stock’s higher probable upside, equities analysts plainly believe Teekay Lng Partners, L.P. Common Stock is more favorable than Hoegh LNG Partners.

Summary

Hoegh LNG Partners beats Teekay Lng Partners, L.P. Common Stock on 10 of the 16 factors compared between the two stocks.

About Teekay Lng Partners, L.P. Common Stock

Teekay LNG Partners L.P. provides marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude oil worldwide. The company operates through two segments, Liquefied Gas and Conventional Tanker. It transports liquid petroleum gases, including propane, butane, and ethane; petrochemical gases, such as ethylene, propylene, and butadiene; and ammonia. As of February 22, 2018, it had a fleet of 49 LNG carriers, 29 LPG/multigas carriers, and 4 conventional tankers. Teekay GP L.L.C. serves as the general partner of the company. Teekay LNG Partners L.P. was founded in 2004 and is based in Hamilton, Bermuda.

About Hoegh LNG Partners

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.

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