Financial Analysis: Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) & Teekay Tankers (NYSE:TNK)

Teekay Tankers (NYSE:TNK) and Ultrapetrol (Bahamas) (OTCMKTS:ULTRF) 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.

Risk and Volatility

Teekay Tankers has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500. Comparatively, Ultrapetrol (Bahamas) has a beta of -0.79, indicating that its share price is 179% less volatile than the S&P 500.

Institutional & Insider Ownership

52.7% of Teekay Tankers shares are owned by institutional investors. 1.9% of Teekay Tankers shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Teekay Tankers and Ultrapetrol (Bahamas), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	1	2	3	2	2.75
Ultrapetrol (Bahamas)	0	0	0	0	0.00

Teekay Tankers currently has a consensus price target of $77.00, suggesting a potential upside of 7.08%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, research analysts plainly believe Teekay Tankers is more favorable than Ultrapetrol (Bahamas).

Profitability

This table compares Teekay Tankers and Ultrapetrol (Bahamas)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	42.60%	16.34%	14.87%
Ultrapetrol (Bahamas)	N/A	N/A	N/A

Valuation & Earnings

This table compares Teekay Tankers and Ultrapetrol (Bahamas)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.80 million	2.61	$351.19 million	$12.30	5.85
Ultrapetrol (Bahamas)	N/A	N/A	N/A	N/A	N/A

Teekay Tankers has higher revenue and earnings than Ultrapetrol (Bahamas).

Summary

Teekay Tankers beats Ultrapetrol (Bahamas) on 11 of the 11 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 Ultrapetrol (Bahamas)

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services in South America, Europe, Central America, North America, and Asia. The company operates in three segments: River Business, Offshore Supply Business, and Ocean Business. The River Business segment owns and operates dry and tanker barges, and push boats in the Hidrovia region of South America. Its dry barges transport agricultural and forestry products, iron ore, and other cargoes; and tanker barges carry petroleum products, vegetable oils, and other liquids. As of December 31, 2015, this segment had 681 barges with approximately 1.3 million dwt capacity; and 34 push boats. The Offshore Supply Business segment owns and operates vessels that provide logistical and transportation services for offshore petroleum exploration and production companies. It transports supplies, such as containerized equipment, drill casings, pipes, and heavy loads; fuel, water, drilling fluids, and bulk cement; and various other supplies to drilling rigs and platforms. This segment's fleet consisted of 13 platform supply vessels and 1 remotely operated vehicle. The Ocean Business segment owns and operates oceangoing vessels, which transports petroleum products, as well as a container line service in the Argentine cabotage trade. The company serves petroleum, agricultural, and mining companies. Ultrapetrol (Bahamas) Limited was founded in 1992 and is headquartered in Nassau, the Bahamas. Ultrapetrol (Bahamas) Limited is a subsidiary of Sparrow Capital Investments Ltd.