Reviewing Tidewater (TDW) and KNOT Offshore Partners (KNOP)

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Tidewater (NYSE: TDW) and KNOT Offshore Partners (NYSE:KNOP) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Tidewater and KNOT Offshore Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tidewater 0 0 2 0 3.00
KNOT Offshore Partners 0 1 0 0 2.00

KNOT Offshore Partners has a consensus price target of $21.00, indicating a potential downside of 4.76%. Given KNOT Offshore Partners’ higher possible upside, analysts plainly believe KNOT Offshore Partners is more favorable than Tidewater.

Dividends

KNOT Offshore Partners pays an annual dividend of $2.08 per share and has a dividend yield of 9.4%. Tidewater does not pay a dividend. KNOT Offshore Partners pays out 92.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Tidewater and KNOT Offshore Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tidewater -409.22% -116.17% -49.56%
KNOT Offshore Partners 36.06% 13.85% 4.99%

Institutional and Insider Ownership

76.7% of Tidewater shares are held by institutional investors. Comparatively, 41.7% of KNOT Offshore Partners shares are held by institutional investors. 1.6% of Tidewater shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Tidewater and KNOT Offshore Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tidewater $129.21 million 6.18 N/A N/A N/A
KNOT Offshore Partners $219.20 million 3.29 $66.90 million $2.26 9.76

KNOT Offshore Partners has higher revenue and earnings than Tidewater.

About Tidewater

Tidewater Inc. provides offshore service vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore exploration, field development, and production, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, remotely operated vehicle (ROV) operations, and seismic and subsea support; and various specialized services, such as pipe and cable laying. The company operates and charters deepwater vessels, including platform supply and anchor handling towing supply vessels for use in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs and production platforms; towing-supply vessels for use in intermediate and shallow waters; and crew boats and utility vessels to transport personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations. It also operates offshore tugs for use in towing floating drilling rigs and barges; and assisting in the docking of tankers, as well as in pipe and cable laying, and construction barges. The company serves oil and natural gas exploration, field development, and production companies; independent exploration and production companies; government-owned or government-controlled organizations, and other companies; drilling contractors; and other companies, such as offshore construction, diving, and well stimulation companies. As of March 31, 2017, it owned or chartered 260 vessels and 8 ROVs. Tidewater Inc. was founded in 1956 and is headquartered in New Orleans, Louisiana.

About KNOT Offshore Partners

KNOT Offshore Partners LP owns and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company loading, transportation and storage of their crude oil services under time charters and bareboat charters. As of April 25, 2018, it had a fleet of 16 shuttle tankers. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.

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