Head to Head Review: Teekay LNG Partners L.P. (TGP) versus Dominion Midstream Partners, (DM)
Teekay LNG Partners L.P. (NYSE: TGP) and Dominion Midstream Partners, (NYSE:DM) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitabiliy, analyst recommendations and valuation.
Earnings & Valuation
This table compares Teekay LNG Partners L.P. and Dominion Midstream Partners,’s 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|
|Dominion Midstream Partners,||$518.60 million||5.06||$295.90 million||$1.36||19.45|
Dominion Midstream Partners, has higher revenue and earnings than Teekay LNG Partners L.P.. Teekay LNG Partners L.P. is trading at a lower price-to-earnings ratio than Dominion Midstream Partners,, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Teekay LNG Partners L.P. and Dominion Midstream 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|
|Dominion Midstream Partners,||0||3||7||0||2.70|
Teekay LNG Partners L.P. presently has a consensus target price of $16.50, suggesting a potential downside of 7.82%. Dominion Midstream Partners, has a consensus target price of $33.88, suggesting a potential upside of 28.07%. Given Dominion Midstream Partners,’s stronger consensus rating and higher possible upside, analysts plainly believe Dominion Midstream Partners, is more favorable than Teekay LNG Partners L.P..
This table compares Teekay LNG Partners L.P. and Dominion Midstream Partners,’s 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%|
|Dominion Midstream Partners,||19.08%||1.82%||1.41%|
Teekay LNG Partners L.P. pays an annual dividend of $0.56 per share and has a dividend yield of 3.1%. Dominion Midstream Partners, pays an annual dividend of $1.15 per share and has a dividend yield of 4.3%. Teekay LNG Partners L.P. pays out 32.7% of its earnings in the form of a dividend. Dominion Midstream Partners, pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Teekay LNG Partners L.P. has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Dominion Midstream Partners, has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Insider and Institutional Ownership
45.6% of Teekay LNG Partners L.P. shares are owned by institutional investors. Comparatively, 57.6% of Dominion Midstream Partners, shares are owned by institutional investors. 11.2% of Dominion Midstream Partners, shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dominion Midstream Partners, beats Teekay LNG Partners L.P. on 11 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 Dominion Midstream Partners,
Dominion Energy Midstream Partners, LP, formerly Dominion Midstream Partners, LP, is a limited partnership. The Company is formed to grow a portfolio of natural gas terminaling, processing, storage, transportation and related assets. The Company’s segments include Dominion Energy, which consists of gas transportation, liquefied natural gas (LNG) import and storage, and Corporate and Other. The Company owns the preferred equity interests and the general partner interest of Dominion Cove Point LNG, LP (Cove Point). Cove Point’s operations consist of LNG import and storage services at the Cove Point LNG Facility and the transportation of domestic natural gas and regasified LNG to Mid-Atlantic markets through the Cove Point Pipeline. The Cove Point LNG Facility includes an offshore pier, regasification facilities and associated equipment required to receive imported LNG from tankers; store LNG in storage tanks; regasify LNG, and deliver regasified LNG to the Cove Point Pipeline.
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