Reviewing Dorian LPG (LPG) & Teekay Corporation (TK)
Dorian LPG (NYSE: LPG) and Teekay Corporation (NYSE:TK) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Volatility & Risk
Dorian LPG has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Teekay Corporation has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.
Insider and Institutional Ownership
47.5% of Dorian LPG shares are owned by institutional investors. Comparatively, 31.5% of Teekay Corporation shares are owned by institutional investors. 26.5% of Dorian LPG shares are owned by insiders. Comparatively, 2.4% of Teekay Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations for Dorian LPG and Teekay Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dorian LPG presently has a consensus price target of $10.00, indicating a potential upside of 49.70%. Teekay Corporation has a consensus price target of $5.33, indicating a potential downside of 42.90%. Given Dorian LPG’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Dorian LPG is more favorable than Teekay Corporation.
This table compares Dorian LPG and Teekay Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Teekay Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 2.4%. Dorian LPG does not pay a dividend. Teekay Corporation pays out -15.4% of its earnings in the form of a dividend. Teekay Corporation has raised its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Dorian LPG and Teekay Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dorian LPG||$157.40 million||2.34||$66.09 million||($0.12)||-55.67|
|Teekay Corporation||$2.16 billion||0.37||$843.75 million||($1.43)||-6.53|
Teekay Corporation has higher revenue and earnings than Dorian LPG. Dorian LPG is trading at a lower price-to-earnings ratio than Teekay Corporation, indicating that it is currently the more affordable of the two stocks.
Dorian LPG Company Profile
Dorian LPG Ltd. is a holding company. The Company, through its subsidiaries, is focused on owning and operating very large gas carrier (VLGCs) in the liquefied petroleum gas (LPG) shipping industry. The Company is engaged in the transportation of LPG across the world through its ownership and operation of LPG tankers. As of March 31, 2016, the Company owned and operated a fleet of 22 VLGCs, including 19 84,000 cubic meter (cbm) ECO-design VLGCs (ECO VLGCs) and three 82,000 cbm VLGCs. The VLGCs in its fleet had an aggregate carrying capacity of approximately 1.8 million cbm at May 26, 2016. It provides in-house commercial and technical management services for all of its vessels. As of May 26, 2016, its VLGCs included Captain Nicholas ML; Captain John NP; Comet; Corsair; Corvette; Cougar; Concorde; Cobra; Continental; Commodore; Constellation; Cheyenne; Cratis; Chaparral; Commander, and Challenger. The Company’s customers include global energy companies, commodity traders and importers.
Teekay Corporation Company Profile
Teekay Corporation (Teekay) is a provider of crude oil and gas marine transportation services. The Company also offers offshore oil production, storage and offloading services, primarily under long-term, fixed-rate contracts. The Company is engaged in the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipping sectors, as well as in the operations in the offshore production, storage and transportation sector. It is also involved in the conventional tanker business. Teekay provides a set of marine services to the oil and gas companies. The Company has four lines of business: offshore logistics (shuttle tankers, the HiLoad DP unit, floating storage and off-take (FSO) units, units for maintenance and safety (UMS), and long-distance towing and offshore installation vessels), offshore production (floating production, storage and offloading (FPSO) units), liquefied gas carriers and conventional tankers.
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