Hoegh LNG Partners (NASDAQ: HMLP) and Nordic American Tankers Limited (NYSE:NAT) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Hoegh LNG Partners and Nordic American Tankers Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hoegh LNG Partners 0 0 5 0 3.00
Nordic American Tankers Limited 3 4 0 0 1.57

Hoegh LNG Partners presently has a consensus price target of $21.63, suggesting a potential upside of 12.34%. Nordic American Tankers Limited has a consensus price target of $6.92, suggesting a potential upside of 20.08%. Given Nordic American Tankers Limited’s higher possible upside, analysts plainly believe Nordic American Tankers Limited is more favorable than Hoegh LNG Partners.

Insider & Institutional Ownership

23.2% of Nordic American Tankers Limited shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Hoegh LNG Partners and Nordic American Tankers Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hoegh LNG Partners $116.75 million 5.43 $89.52 million N/A N/A
Nordic American Tankers Limited $313.36 million 1.87 $89.71 million $0.02 288.00

Nordic American Tankers Limited has higher revenue and earnings than Hoegh LNG Partners.

Profitability

This table compares Hoegh LNG Partners and Nordic American Tankers Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hoegh LNG Partners 34.87% 13.48% 4.54%
Nordic American Tankers Limited 0.06% 0.25% 0.16%

Dividends

Nordic American Tankers Limited pays an annual dividend of $0.40 per share and has a dividend yield of 6.9%. Hoegh LNG Partners does not pay a dividend. Nordic American Tankers Limited pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Hoegh LNG Partners beats Nordic American Tankers Limited on 7 of the 12 factors compared between the two stocks.

About Hoegh LNG Partners

Hoegh LNG Partners LP owns, operates and acquires floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers and other LNG infrastructure assets under long-term charters. The Company’s segments include Majority held FSRUs, Joint venture FSRUs and other. The Majority held FSRUs segment includes the direct financing lease related to the PT Perusahaan Gas Negara (Persero) Tbk (PGN) FSRU Lampung and the operating lease related to the Hoegh Gallant. The Joint venture FSRUs segment includes approximately two FSRUs, including the GDF Suez LNG Supply S.A. (GDF Suez) Neptune and the GDF Suez Cape Ann, which operate under long term time charters. The Company intends to acquire newbuilding FSRUs on long-term charters, rather than FSRUs based on retrofitted, first-generation LNG carriers. The PGN FSRU Lampung is located offshore in the Lampung province at the southeast coast of Sumatra, Indonesia.

About Nordic American Tankers Limited

Nordic American Tankers Limited is an international tanker company. The Company owns approximately 26 vessels, including approximately two new buildings under construction, of approximately 156,000 deadweight tonnage (dwt) each. The Company’s Suezmaxes tankers can carry over one million barrels of oil. The vessels in the Company’s fleet are homogenous and interchangeable. The Company’s vessels are employed in the spot market. The Company’s vessels include Nordic Harrier, Nordic Hawk, Nordic Hunter, Nordic Voyager, Nordic Fighter, Nordic Freedom, Nordic Discovery, Nordic Saturn, Nordic Jupiter, Nordic Moon, Nordic Apollo, Nordic Cosmos, Nordic Sprite, Nordic Mistral, Nordic Passat, Nordic Vega, Nordic Breeze, Nordic Zenith, Nordic Sprinter, Nordic Skier and Nordic Light.

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