Critical Review: Teekay LNG Partners L.P. (TGP) and Golar LNG Limited (GLNG)
Teekay LNG Partners L.P. (NYSE: TGP) and Golar LNG Limited (NASDAQ:GLNG) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
This is a breakdown of current ratings and recommmendations for Teekay LNG Partners L.P. and Golar LNG Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Teekay LNG Partners L.P.||0||3||1||0||2.25|
|Golar LNG Limited||0||2||8||0||2.80|
Teekay LNG Partners L.P. presently has a consensus target price of $16.50, indicating a potential downside of 3.23%. Golar LNG Limited has a consensus target price of $34.67, indicating a potential upside of 64.22%. Given Golar LNG Limited’s stronger consensus rating and higher probable upside, analysts clearly believe Golar LNG Limited is more favorable than Teekay LNG Partners L.P..
Risk and Volatility
Teekay LNG Partners L.P. has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Golar LNG Limited has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Valuation & Earnings
This table compares Teekay LNG Partners L.P. and Golar LNG Limited’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Teekay LNG Partners L.P.||$403.52 million||3.36||$279.27 million||$1.71||9.97|
|Golar LNG Limited||$98.85 million||20.93||-$49.98 million||N/A||N/A|
Teekay LNG Partners L.P. has higher revenue and earnings than Golar LNG Limited.
Insider & Institutional Ownership
38.1% of Teekay LNG Partners L.P. shares are held by institutional investors. Comparatively, 87.5% of Golar LNG Limited shares are held by institutional investors. 0.0% of Golar LNG Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Teekay LNG Partners L.P. pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. Golar LNG Limited pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Teekay LNG Partners L.P. pays out 32.7% of its earnings in the form of a dividend.
This table compares Teekay LNG Partners L.P. and Golar LNG Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Teekay LNG Partners L.P.||38.28%||6.12%||2.25%|
|Golar LNG Limited||-179.35%||-7.78%||-3.28%|
Teekay LNG Partners L.P. Company Profile
Teekay LNG Partners L.P. is an international provider of marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil. The Company’s fleet, excluding newbuildings, consists of approximately 30 LNG carriers (including the six MALT LNG Carriers, four RasGas 3 LNG Carriers, four Angola LNG Carriers and two Exmar LNG Carriers), over 20 LPG carriers (including 20 Exmar LPG Carriers), approximately seven Suezmax-class crude oil tankers and a Handymax product tanker, all of which are double-hulled. Its segments include liquefied gas segment and conventional tanker segment. The liquefied gas segment consists of LNG carriers, LPG carriers and multigas carriers, which can carry both LNG and LPG. The conventional tanker segment consists of approximately seven Suezmax-class crude oil tankers and a Handymax product tanker. Its vessels primarily operate under long-term, fixed-rate charters with energy and utility companies, and Teekay Corporation.
Golar LNG Limited Company Profile
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.
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