Teekay Tankers (NYSE:TNK – Get Free Report) and China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Institutional & Insider Ownership
52.7% of Teekay Tankers shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by 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.
Valuation and Earnings
This table compares Teekay Tankers and China Shenhua Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teekay Tankers | $951.80 million | 3.11 | $351.19 million | $16.97 | 5.05 |
| China Shenhua Energy | $41.03 billion | 2.65 | $7.54 billion | $1.65 | 13.26 |
China Shenhua Energy has higher revenue and earnings than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than China Shenhua Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Teekay Tankers and China Shenhua Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teekay Tankers | 51.35% | 22.11% | 20.23% |
| China Shenhua Energy | 15.92% | 11.40% | 7.77% |
Analyst Ratings
This is a summary of recent recommendations for Teekay Tankers and China Shenhua Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teekay Tankers | 1 | 3 | 2 | 0 | 2.17 |
| China Shenhua Energy | 0 | 1 | 0 | 0 | 2.00 |
Teekay Tankers currently has a consensus price target of $95.50, suggesting a potential upside of 11.48%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, analysts clearly believe Teekay Tankers is more favorable than China Shenhua Energy.
Dividends
Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. China Shenhua Energy pays an annual dividend of $0.91 per share and has a dividend yield of 4.2%. Teekay Tankers pays out 5.9% of its earnings in the form of a dividend. China Shenhua Energy pays out 55.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teekay Tankers has raised its dividend for 2 consecutive years.
Risk and Volatility
Teekay Tankers has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500. Comparatively, China Shenhua Energy has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.
Summary
Teekay Tankers beats China Shenhua Energy on 12 of the 17 factors compared between the two stocks.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
About China Shenhua Energy
China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.
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