Head to Head Analysis: World Kinect (NYSE:WKC) and Golar LNG (NASDAQ:GLNG)

World Kinect (NYSE:WKC) and Golar LNG (NASDAQ:GLNG) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Valuation & Earnings

This table compares World Kinect and Golar LNG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Kinect	$36.92 billion	0.05	-$614.40 million	($3.21)	-11.44
Golar LNG	$523.38 million	8.70	$65.68 million	$1.60	28.09

Golar LNG has lower revenue, but higher earnings than World Kinect. World Kinect is trading at a lower price-to-earnings ratio than Golar LNG, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

World Kinect has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Dividends

World Kinect pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Golar LNG pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. World Kinect pays out -28.7% of its earnings in the form of a dividend. Golar LNG pays out 62.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. World Kinect has raised its dividend for 6 consecutive years and Golar LNG has raised its dividend for 2 consecutive years. World Kinect is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares World Kinect and Golar LNG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
World Kinect	-0.43%	11.24%	2.40%
Golar LNG	31.27%	8.91%	3.75%

Institutional & Insider Ownership

97.1% of World Kinect shares are owned by institutional investors. Comparatively, 92.2% of Golar LNG shares are owned by institutional investors. 3.8% of World Kinect shares are owned by company insiders. Comparatively, 0.0% of Golar LNG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for World Kinect and Golar LNG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Kinect	2	1	0	0	1.33
Golar LNG	0	1	4	1	3.00

World Kinect currently has a consensus target price of $30.00, indicating a potential downside of 18.33%. Golar LNG has a consensus target price of $68.67, indicating a potential upside of 52.76%. Given Golar LNG’s stronger consensus rating and higher possible upside, analysts plainly believe Golar LNG is more favorable than World Kinect.

Summary

Golar LNG beats World Kinect on 10 of the 18 factors compared between the two stocks.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.

About Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.