Teekay Tankers (NYSE:TNK – Get Free Report) and World Kinect (NYSE:WKC – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Earnings and Valuation
This table compares Teekay Tankers and World Kinect”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teekay Tankers | $951.80 million | 3.30 | $351.19 million | $16.97 | 5.36 |
| World Kinect | $41.70 billion | 0.04 | -$614.40 million | ($3.21) | -11.21 |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Teekay Tankers and World Kinect, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teekay Tankers | 1 | 3 | 3 | 1 | 2.50 |
| World Kinect | 2 | 0 | 0 | 1 | 2.00 |
Teekay Tankers presently has a consensus target price of $77.00, suggesting a potential downside of 15.28%. World Kinect has a consensus target price of $30.00, suggesting a potential downside of 16.64%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, equities analysts plainly believe Teekay Tankers is more favorable than World Kinect.
Institutional & Insider Ownership
52.7% of Teekay Tankers shares are held by institutional investors. Comparatively, 97.1% of World Kinect shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by company insiders. Comparatively, 3.8% of World Kinect shares are held by company 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.
Risk and Volatility
Teekay Tankers has a beta of -0.22, indicating that its stock price is 122% less volatile than the S&P 500. Comparatively, World Kinect has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Profitability
This table compares Teekay Tankers and World Kinect’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teekay Tankers | 51.35% | 22.11% | 20.23% |
| World Kinect | -0.43% | 11.24% | 2.40% |
Dividends
Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. World Kinect pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Teekay Tankers pays out 5.9% of its earnings in the form of a dividend. World Kinect pays out -28.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teekay Tankers has raised its dividend for 2 consecutive years and World Kinect has raised its dividend for 6 consecutive years. World Kinect is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Teekay Tankers beats World Kinect on 10 of the 17 factors compared between the two stocks.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
About World Kinect
World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.
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