Analyzing Golar LNG Limited (GLNG) and GasLog Partners (GLOP)
Golar LNG Limited (NASDAQ: GLNG) and GasLog Partners (NYSE:GLOP) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitabiliy and institutional ownership.
This is a breakdown of current ratings and target prices for Golar LNG Limited and GasLog Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golar LNG Limited||0||2||9||0||2.82|
Golar LNG Limited presently has a consensus price target of $33.14, suggesting a potential upside of 42.24%. GasLog Partners has a consensus price target of $25.60, suggesting a potential upside of 4.49%. Given Golar LNG Limited’s higher possible upside, analysts plainly believe Golar LNG Limited is more favorable than GasLog Partners.
Volatility and Risk
Golar LNG Limited has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, GasLog Partners has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.
Golar LNG Limited pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. GasLog Partners pays an annual dividend of $2.00 per share and has a dividend yield of 8.2%. GasLog Partners pays out 90.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. GasLog Partners has raised its dividend for 2 consecutive years. GasLog Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Golar LNG Limited and GasLog Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golar LNG Limited||$88.81 million||25.71||-$60.92 million||N/A||N/A|
|GasLog Partners||$229.60 million||4.17||$168.28 million||$2.22||11.04|
GasLog Partners has higher revenue and earnings than Golar LNG Limited.
Institutional and Insider Ownership
89.1% of Golar LNG Limited shares are owned by institutional investors. Comparatively, 58.8% of GasLog Partners shares are owned by institutional investors. 0.0% of Golar LNG Limited shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Golar LNG Limited and GasLog Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golar LNG Limited||-228.55%||-7.51%||-3.15%|
GasLog Partners beats Golar LNG Limited on 9 of the 15 factors compared between the two stocks.
About Golar LNG Limited
Golar LNG Limited is a midstream liquefied natural gas (LNG) company engaged primarily in the transportation, regasification, liquefaction and trading of LNG. The Company is engaged in the acquisition, ownership, operation and chartering of LNG carriers and Floating Storage Regasification Unit (FSRUs) through its subsidiaries and affiliates, and the development of LNG projects, such as floating LNGs (FLNGs). The Company’s segments include Vessel operations, LNG trading and FLNG. Under the Vessel operations segment, the Company operates and charters out LNG carriers and FSRUs on fixed terms to customers. Through the LNG trading segment, the Company provides physical and financial risk management in LNG and gas markets for customers around the world. The FLNG segment includes the costs associated with the conversion of its LNG carrier, the Hilli, to a FLNG. The Company, along with its affiliate, Golar LNG Partners LP, has a combined fleet of approximately 30 vessels.
About GasLog Partners
GasLog Partners LP is a limited partnership company. The Company focuses on owning, operating and acquiring liquefied natural gas (LNG) carriers under multi-year charters. The Company’s fleet consists of 9 LNG carriers with an average carrying capacity of approximately 149,500 cubic meters (cbm), each of which has a multi-year time charter. The Company’s fleet includes GasLog Seattle, GasLog Shanghai, GasLog Santiago, GasLog Sydney, Methane Rita Andrea, Methane Jane Elizabeth, Methane Alison Victoria, Methane Shirley Elisabeth and Methane Heather Sally. The GasLog Seattle is a tri-fuel diesel electric LNG carrier. Each of the GasLog Seattle, GasLog Shanghai, GasLog Santiago and GasLog Sydney vessels has a cargo capacity of approximately 155,000 cbm. Each of the Methane Rita Andrea, Methane Heather Sally, Methane Shirley Elisabeth, Methane Alison Victoria and Methane Jane Elizabeth vessels has a cargo capacity of approximately 145,000 cbm.
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