Head-To-Head Contrast: Hoegh LNG Partners (HMLP) versus Nordic American Tanker (NAT)
Hoegh LNG Partners (NYSE: HMLP) and Nordic American Tanker (NYSE:NAT) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Institutional and Insider Ownership
64.1% of Hoegh LNG Partners shares are held by institutional investors. Comparatively, 23.6% of Nordic American Tanker shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Hoegh LNG Partners and Nordic American Tanker’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hoegh LNG Partners||38.90%||7.77%||3.30%|
|Nordic American Tanker||0.06%||0.25%||0.16%|
Hoegh LNG Partners pays an annual dividend of $1.72 per share and has a dividend yield of 9.5%. Nordic American Tanker pays an annual dividend of $0.12 per share and has a dividend yield of 4.6%. Hoegh LNG Partners pays out 109.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Hoegh LNG Partners has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Nordic American Tanker has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Hoegh LNG Partners and Nordic American Tanker, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hoegh LNG Partners||0||0||4||0||3.00|
|Nordic American Tanker||2||3||0||0||1.60|
Hoegh LNG Partners currently has a consensus target price of $21.50, indicating a potential upside of 18.46%. Nordic American Tanker has a consensus target price of $4.80, indicating a potential upside of 85.33%. Given Nordic American Tanker’s higher probable upside, analysts plainly believe Nordic American Tanker is more favorable than Hoegh LNG Partners.
Valuation & Earnings
This table compares Hoegh LNG Partners and Nordic American Tanker’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hoegh LNG Partners||$91.11 million||3.94||$41.37 million||$1.57||11.56|
|Nordic American Tanker||$236.79 million||1.12||-$4.45 million||N/A||N/A|
Hoegh LNG Partners has higher earnings, but lower revenue than Nordic American Tanker.
Hoegh LNG Partners beats Nordic American Tanker on 10 of the 13 factors compared between the two stocks.
Hoegh LNG Partners Company Profile
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.
Nordic American Tanker Company Profile
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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