Hoegh LNG Partners (NYSE:HMLP) and Dynagas LNG Partners (NYSE:DLNG) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Institutional & Insider Ownership

27.0% of Hoegh LNG Partners shares are held by institutional investors. Comparatively, 11.3% of Dynagas LNG Partners 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.

Valuation & Earnings

This table compares Hoegh LNG Partners and Dynagas LNG Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hoegh LNG Partners $143.53 million 4.17 $48.78 million $1.36 13.31
Dynagas LNG Partners $138.99 million 2.16 $16.05 million $0.74 11.42

Hoegh LNG Partners has higher revenue and earnings than Dynagas LNG Partners. Dynagas LNG Partners is trading at a lower price-to-earnings ratio than Hoegh LNG Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Hoegh LNG Partners and Dynagas LNG Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hoegh LNG Partners 0 3 3 0 2.50
Dynagas LNG Partners 1 4 2 0 2.14

Hoegh LNG Partners currently has a consensus price target of $20.00, indicating a potential upside of 10.50%. Dynagas LNG Partners has a consensus price target of $10.75, indicating a potential upside of 27.22%. Given Dynagas LNG Partners’ higher probable upside, analysts clearly believe Dynagas LNG Partners is more favorable than Hoegh LNG Partners.

Profitability

This table compares Hoegh LNG Partners and Dynagas LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hoegh LNG Partners 46.62% 14.66% 5.39%
Dynagas LNG Partners 11.15% 10.30% 2.35%

Risk and Volatility

Hoegh LNG Partners has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Dynagas LNG Partners has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Dividends

Hoegh LNG Partners pays an annual dividend of $1.76 per share and has a dividend yield of 9.7%. Dynagas LNG Partners pays an annual dividend of $1.00 per share and has a dividend yield of 11.8%. 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. Dynagas LNG Partners pays out 135.1% 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 raised its dividend for 2 consecutive years.

Summary

Hoegh LNG Partners beats Dynagas LNG Partners on 13 of the 16 factors compared between the two stocks.

Hoegh LNG Partners Company Profile

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.

Dynagas LNG Partners Company Profile

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry worldwide. The company owns and operates liquefied natural gas (LNG) carriers. As of March 9, 2018, its fleet consisted of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was founded in 2013 and is headquartered in Monaco.

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