Teekay LNG Partners L.P. (NYSE: TGP) and GasLog Partners (NYSE:GLOP) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitabiliy.

Institutional and Insider Ownership

45.6% of Teekay LNG Partners L.P. shares are owned by institutional investors. Comparatively, 58.4% of GasLog Partners shares are owned by institutional investors. 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.

Volatility & Risk

Teekay LNG Partners L.P. has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, GasLog Partners has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500.

Profitability

This table compares Teekay LNG Partners L.P. and GasLog Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay LNG Partners L.P. 38.28% 6.12% 2.25%
GasLog Partners 35.43% 12.06% 5.27%

Earnings and Valuation

This table compares Teekay LNG Partners L.P. and GasLog Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teekay LNG Partners L.P. $401.85 million 3.55 $280.43 million $1.71 10.47
GasLog Partners $238.21 million 3.78 $174.92 million $2.15 10.84

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

Analyst Ratings

This is a breakdown of recent ratings for Teekay LNG Partners L.P. and GasLog Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay LNG Partners L.P. 0 3 2 0 2.40
GasLog Partners 0 1 5 0 2.83

Teekay LNG Partners L.P. presently has a consensus price target of $16.50, suggesting a potential downside of 7.82%. GasLog Partners has a consensus price target of $26.00, suggesting a potential upside of 11.59%. Given GasLog Partners’ stronger consensus rating and higher possible upside, analysts clearly believe GasLog Partners is more favorable than Teekay LNG Partners L.P..

Dividends

Teekay LNG Partners L.P. pays an annual dividend of $0.56 per share and has a dividend yield of 3.1%. GasLog Partners pays an annual dividend of $2.04 per share and has a dividend yield of 8.8%. Teekay LNG Partners L.P. pays out 32.7% of its earnings in the form of a dividend. GasLog Partners pays out 94.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teekay LNG Partners L.P. has raised its dividend for 2 consecutive years.

Summary

GasLog Partners beats Teekay LNG Partners L.P. on 10 of the 16 factors compared between the two stocks.

About Teekay LNG Partners L.P.

Teekay LNG Partners L.P. is an international provider of marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil. The Company’s fleet, excluding newbuildings, consists of approximately 30 LNG carriers (including the six MALT LNG Carriers, four RasGas 3 LNG Carriers, four Angola LNG Carriers and two Exmar LNG Carriers), over 20 LPG carriers (including 20 Exmar LPG Carriers), approximately seven Suezmax-class crude oil tankers and a Handymax product tanker, all of which are double-hulled. Its segments include liquefied gas segment and conventional tanker segment. The liquefied gas segment consists of LNG carriers, LPG carriers and multigas carriers, which can carry both LNG and LPG. The conventional tanker segment consists of approximately seven Suezmax-class crude oil tankers and a Handymax product tanker. Its vessels primarily operate under long-term, fixed-rate charters with energy and utility companies, and Teekay Corporation.

About GasLog Partners

GasLog Partners LP is a limited partnership company. The Company focuses on owning, operating and acquiring liquefied natural gas (LNG) carriers under multi-year charters. The Company’s fleet consists of 9 LNG carriers with an average carrying capacity of approximately 149,500 cubic meters (cbm), each of which has a multi-year time charter. The Company’s fleet includes GasLog Seattle, GasLog Shanghai, GasLog Santiago, GasLog Sydney, Methane Rita Andrea, Methane Jane Elizabeth, Methane Alison Victoria, Methane Shirley Elisabeth and Methane Heather Sally. The GasLog Seattle is a tri-fuel diesel electric LNG carrier. Each of the GasLog Seattle, GasLog Shanghai, GasLog Santiago and GasLog Sydney vessels has a cargo capacity of approximately 155,000 cbm. Each of the Methane Rita Andrea, Methane Heather Sally, Methane Shirley Elisabeth, Methane Alison Victoria and Methane Jane Elizabeth vessels has a cargo capacity of approximately 145,000 cbm.

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