Head to Head Review: World Kinect (NYSE:WKC) & Dynagas LNG Partners (NYSE:DLNG)

Dynagas LNG Partners (NYSE:DLNG) and World Kinect (NYSE:WKC) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynagas LNG Partners	$156.62 million	0.84	$61.60 million	$1.68	2.16
World Kinect	$36.92 billion	0.05	-$614.40 million	($3.21)	-11.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynagas LNG Partners	42.33%	13.05%	6.74%
World Kinect	-0.43%	11.24%	2.40%

Insider and Institutional Ownership

97.1% of World Kinect shares are held by institutional investors. 3.8% of World Kinect shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.5%. World Kinect pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Dynagas LNG Partners pays out 11.9% of its earnings in the form of a dividend. World Kinect pays out -28.7% 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.

Analyst Recommendations

This is a breakdown of recent ratings for Dynagas LNG Partners and World Kinect, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynagas LNG Partners	0	1	0	0	2.00
World Kinect	2	0	0	1	2.00

World Kinect has a consensus target price of $30.00, indicating a potential downside of 16.19%. Given World Kinect’s higher possible upside, analysts plainly believe World Kinect is more favorable than Dynagas LNG Partners.

Risk & Volatility

Dynagas LNG Partners has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, World Kinect has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

About Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.

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.