TransMontaigne (TLP) & Its Competitors Critical Comparison

TransMontaigne (NYSE: TLP) is one of 21 public companies in the “Pipelines, except natural gas” industry, but how does it compare to its competitors? We will compare TransMontaigne to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

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62.0% of TransMontaigne shares are held by institutional investors. Comparatively, 57.0% of shares of all “Pipelines, except natural gas” companies are held by institutional investors. 20.4% of TransMontaigne shares are held by company insiders. Comparatively, 5.9% of shares of all “Pipelines, except natural gas” companies 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.

Analyst Recommendations

This is a summary of recent ratings for TransMontaigne and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransMontaigne 0 2 3 0 2.60
TransMontaigne Competitors 214 984 1036 28 2.39

TransMontaigne presently has a consensus price target of $49.20, suggesting a potential upside of 22.21%. As a group, “Pipelines, except natural gas” companies have a potential upside of 20.20%. Given TransMontaigne’s stronger consensus rating and higher possible upside, equities analysts plainly believe TransMontaigne is more favorable than its competitors.

Profitability

This table compares TransMontaigne and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransMontaigne 24.56% 12.16% 5.83%
TransMontaigne Competitors 31.87% -1.27% 9.40%

Earnings & Valuation

This table compares TransMontaigne and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TransMontaigne $183.27 million $48.49 million 18.30
TransMontaigne Competitors $6.57 billion $435.72 million 19.46

TransMontaigne’s competitors have higher revenue and earnings than TransMontaigne. TransMontaigne is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

TransMontaigne has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, TransMontaigne’s competitors have a beta of 1.07, indicating that their average share price is 7% more volatile than the S&P 500.

Dividends

TransMontaigne pays an annual dividend of $3.08 per share and has a dividend yield of 7.7%. TransMontaigne pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pipelines, except natural gas” companies pay a dividend yield of 7.8% and pay out 134.2% of their earnings in the form of a dividend. TransMontaigne has raised its dividend for 8 consecutive years. TransMontaigne lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

TransMontaigne competitors beat TransMontaigne on 9 of the 15 factors compared.

About TransMontaigne

TransMontaigne Partners L.P. provides integrated terminaling, storage, transportation, and related services. The company offers its services to customers engaged in the trading, distribution, and marketing of light and heavy refined petroleum products, crude oil, chemicals, fertilizers, and other liquid products. It operates 8 refined product terminals in Florida with approximately 6.9 million barrels of aggregate active storage capacity; and a 67-mile interstate refined products pipeline between Missouri and Arkansas, as well as 2 refined product terminals in Missouri and Arkansas with an aggregate active storage capacity of approximately 421,000 barrels. The company also operates 1 crude oil terminal in Cushing with an aggregate active storage capacity of approximately 1.0 million barrels; 1 refined product terminal located in Oklahoma City with aggregate active storage capacity of approximately 0.2 million barrels; 1 refined product terminal located in Brownsville with an aggregate active storage capacity of approximately 0.9 million barrels; and a 16-mile LPG pipeline from its Brownsville facility to the U.S. border. In addition, it operates a 174-mile bi-directional refined products and Ella-Brownsville pipelines; light petroleum products terminal located in Brownsville with an aggregate active storage capacity of approximately 1.5 million barrels; 7.1 million barrel terminal facility on the Houston Ship Channel; 12 refined product terminals located along the Mississippi and Ohio rivers with approximately 2.7 million barrels of aggregate active storage capacity; and a dock facility in Baton Rouge, as well as 22 refined product terminals located along the Colonial and Plantation pipelines with an aggregate active storage capacity of approximately 11.0 million barrels. TransMontaigne GP L.L.C. serves as the general partner of the company. The company was founded in 2005 and is headquartered in Denver, Colorado.

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