Hoegh LNG Partners (NYSE: HMLP) and International Seaways (NYSE:INSW) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Earnings and Valuation

This table compares Hoegh LNG Partners and International Seaways’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hoegh LNG Partners $91.11 million 3.87 $41.37 million $1.57 11.37
International Seaways $398.32 million 1.30 -$18.22 million ($2.51) -7.11

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hoegh LNG Partners and International Seaways, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hoegh LNG Partners 0 0 4 0 3.00
International Seaways 0 0 1 0 3.00

Hoegh LNG Partners presently has a consensus price target of $21.50, indicating a potential upside of 20.45%. International Seaways has a consensus price target of $30.00, indicating a potential upside of 68.07%. Given International Seaways’ higher probable upside, analysts clearly believe International Seaways is more favorable than Hoegh LNG Partners.

Profitability

This table compares Hoegh LNG Partners and International Seaways’ 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%
International Seaways -23.86% 1.36% 0.95%

Insider and Institutional Ownership

64.1% of Hoegh LNG Partners shares are held by institutional investors. Comparatively, 86.3% of International Seaways shares are held by institutional investors. 0.5% of International Seaways shares are held 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.

Dividends

Hoegh LNG Partners pays an annual dividend of $1.72 per share and has a dividend yield of 9.6%. International Seaways does not pay a dividend. 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.

Summary

Hoegh LNG Partners beats International Seaways on 8 of the 14 factors compared between the two stocks.

About Hoegh LNG Partners

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.

About International Seaways

International Seaways, Inc. and its subsidiaries own and operate a fleet of oceangoing vessels. The Company’s oceangoing vessels engage in the transportation of crude oil and petroleum products in the International Flag trades. The Company’s segments are International Crude Tankers and International Product Carriers. Its 55-vessel fleet consists of Ultra Large Crude Carrier (ULCC), Very Large Crude Carrier (VLCC), Aframax and Panamax crude tankers, as well as long range 1 (LR1), LR2 and medium range (MR) product carriers. Its International Crude Tankers segment is made up of a ULCC and a fleet of VLCCs, Aframaxes, and Panamaxes. Its International Product Carriers segment consists of a fleet of MRs, LR1s and an LR2 engaged in the transportation of crude and refined petroleum products. Through joint venture partnerships (the JVs), it has ownership interests in approximately four liquefied natural gas carriers and approximately two floating storage and offloading service vessels.

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