Financial Analysis: KNOT Offshore Partners (NYSE:KNOP) & Okeanis Eco Tankers (NYSE:ECO)

Okeanis Eco Tankers (NYSE:ECO) and KNOT Offshore Partners (NYSE:KNOP) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Okeanis Eco Tankers and KNOT Offshore Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Okeanis Eco Tankers	0	5	1	0	2.17
KNOT Offshore Partners	1	2	1	1	2.40

Okeanis Eco Tankers currently has a consensus price target of $59.52, suggesting a potential upside of 5.43%. KNOT Offshore Partners has a consensus price target of $14.00, suggesting a potential upside of 32.38%. Given KNOT Offshore Partners’ stronger consensus rating and higher probable upside, analysts plainly believe KNOT Offshore Partners is more favorable than Okeanis Eco Tankers.

Volatility & Risk

Okeanis Eco Tankers has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500. Comparatively, KNOT Offshore Partners has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500.

Earnings and Valuation

This table compares Okeanis Eco Tankers and KNOT Offshore Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Okeanis Eco Tankers	$391.55 million	5.63	$122.95 million	$5.66	9.97
KNOT Offshore Partners	$372.42 million	0.96	$22.96 million	$0.54	19.59

Okeanis Eco Tankers has higher revenue and earnings than KNOT Offshore Partners. Okeanis Eco Tankers is trading at a lower price-to-earnings ratio than KNOT Offshore Partners, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

26.8% of KNOT Offshore Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Okeanis Eco Tankers pays an annual dividend of $8.00 per share and has a dividend yield of 14.2%. KNOT Offshore Partners pays an annual dividend of $0.30 per share and has a dividend yield of 2.8%. Okeanis Eco Tankers pays out 141.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KNOT Offshore Partners pays out 55.6% of its earnings in the form of a dividend.

Profitability

This table compares Okeanis Eco Tankers and KNOT Offshore Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Okeanis Eco Tankers	41.26%	37.13%	16.69%
KNOT Offshore Partners	4.92%	6.36%	2.05%

Summary

Okeanis Eco Tankers beats KNOT Offshore Partners on 8 of the 15 factors compared between the two stocks.

About Okeanis Eco Tankers

Okeanis Eco Tankers Corp., a shipping company, owns and operates tanker vessels worldwide. It operates a fleet of 14 tanker vessels comprising six modern Suezmax tankers and eight modern VLCC tankers focusing on the transportation of crude oil. The company was incorporated in 2018 and is based in Neo Faliro, Greece.

About KNOT Offshore Partners

KNOT Offshore Partners LP acquires, owns, and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company provides loading, transportation, and discharge of crude oil under time charters and bareboat charters. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.