Teekay Corporation (NYSE: TK) and KNOT Offshore Partners (NYSE:KNOP) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Teekay Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 2.4%. KNOT Offshore Partners pays an annual dividend of $2.08 per share and has a dividend yield of 8.9%. Teekay Corporation pays out -15.4% of its earnings in the form of a dividend. KNOT Offshore Partners pays out 87.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teekay Corporation has raised its dividend for 3 consecutive years and KNOT Offshore Partners has raised its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Teekay Corporation and KNOT Offshore Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Teekay Corporation||$2.16 billion||0.36||$843.75 million||($1.43)||-6.29|
|KNOT Offshore Partners||$184.55 million||3.77||$140.66 million||$2.39||9.79|
Teekay Corporation has higher revenue and earnings than KNOT Offshore Partners. Teekay Corporation is trading at a lower price-to-earnings ratio than KNOT Offshore Partners, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
31.5% of Teekay Corporation shares are held by institutional investors. Comparatively, 50.1% of KNOT Offshore Partners shares are held by institutional investors. 2.4% of Teekay Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Teekay Corporation and KNOT Offshore Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KNOT Offshore Partners||0||0||0||0||N/A|
Teekay Corporation currently has a consensus price target of $5.33, suggesting a potential downside of 40.67%. Given Teekay Corporation’s higher probable upside, analysts clearly believe Teekay Corporation is more favorable than KNOT Offshore Partners.
This table compares Teekay Corporation and KNOT Offshore Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KNOT Offshore Partners||35.75%||10.26%||4.31%|
Risk and Volatility
Teekay Corporation has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, KNOT Offshore Partners has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
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.
KNOT Offshore Partners Company Profile
KNOT Offshore Partners LP (KNOT Offshore Partners or the Partnership), owns, operates and acquires shuttle tankers under long-term charters. The Partnership’s vessels in its fleet are chartered to Statoil ASA (Statoil), Petrobras Transporte S.A. (Transpetro), Repsol Sinopec Brasil, S.A. (Repsol), Royal Dutch Shell plc, ExxonMobil, and Eni Trading and Shipping S.p.A. (ENI). As of March 17, 2017, the Company had a fleet of 12 shuttle tankers. Its shuttle tankers include Fortaleza Knutsen, Recife Knutsen, Bodil Knutsen and Dan Cisne. KNOT Offshore Partners GP LLC is the general partner of the Partnership. It is engaged in the loading, transportation and storage of the crude oil using the vessels in its fleet. It provides all of these services under time charters and bareboat charters. As of December 31, 2016, eight of its shuttle tankers were chartered under time charters and four of its shuttle tankers were chartered under bareboat charters.
Receive News & Ratings for Teekay Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Teekay Corporation and related companies with MarketBeat.com's FREE daily email newsletter.