Dorian LPG (NYSE: LPG) and Hoegh LNG Partners (NYSE:HMLP) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.
Valuation and Earnings
This table compares Dorian LPG and Hoegh LNG Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dorian LPG||$167.45 million||2.75||-$1.44 million||($0.21)||-39.76|
|Hoegh LNG Partners||$91.11 million||3.94||$41.37 million||$1.57||11.56|
This table compares Dorian LPG and Hoegh LNG Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hoegh LNG Partners||38.90%||7.77%||3.30%|
Hoegh LNG Partners pays an annual dividend of $1.72 per share and has a dividend yield of 9.5%. Dorian LPG does not pay a dividend. Hoegh LNG Partners pays out 109.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and target prices for Dorian LPG and Hoegh LNG Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hoegh LNG Partners||0||0||3||0||3.00|
Dorian LPG presently has a consensus target price of $10.00, suggesting a potential upside of 19.76%. Hoegh LNG Partners has a consensus target price of $21.50, suggesting a potential upside of 18.46%. Given Dorian LPG’s higher probable upside, equities analysts clearly believe Dorian LPG is more favorable than Hoegh LNG Partners.
Volatility and Risk
Dorian LPG has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Hoegh LNG Partners has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Institutional & Insider Ownership
47.7% of Dorian LPG shares are owned by institutional investors. Comparatively, 64.1% of Hoegh LNG Partners shares are owned by institutional investors. 26.5% of Dorian LPG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Hoegh LNG Partners beats Dorian LPG on 11 of the 16 factors compared between the two stocks.
Dorian LPG Company Profile
Dorian LPG Ltd. is a holding company. The Company, through its subsidiaries, is focused on owning and operating very large gas carrier (VLGCs) in the liquefied petroleum gas (LPG) shipping industry. The Company is engaged in the transportation of LPG across the world through its ownership and operation of LPG tankers. As of March 31, 2016, the Company owned and operated a fleet of 22 VLGCs, including 19 84,000 cubic meter (cbm) ECO-design VLGCs (ECO VLGCs) and three 82,000 cbm VLGCs. The VLGCs in its fleet had an aggregate carrying capacity of approximately 1.8 million cbm at May 26, 2016. It provides in-house commercial and technical management services for all of its vessels. As of May 26, 2016, its VLGCs included Captain Nicholas ML; Captain John NP; Comet; Corsair; Corvette; Cougar; Concorde; Cobra; Continental; Commodore; Constellation; Cheyenne; Cratis; Chaparral; Commander, and Challenger. The Company’s customers include global energy companies, commodity traders and importers.
Hoegh LNG Partners Company Profile
Hoegh LNG Partners LP owns, operates and acquires floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers and other LNG infrastructure assets under long-term charters. The Company’s segments include Majority held FSRUs, Joint venture FSRUs and other. The Majority held FSRUs segment includes the direct financing lease related to the PT Perusahaan Gas Negara (Persero) Tbk (PGN) FSRU Lampung and the operating lease related to the Hoegh Gallant. The Joint venture FSRUs segment includes approximately two FSRUs, including the GDF Suez LNG Supply S.A. (GDF Suez) Neptune and the GDF Suez Cape Ann, which operate under long term time charters. The Company intends to acquire newbuilding FSRUs on long-term charters, rather than FSRUs based on retrofitted, first-generation LNG carriers. The PGN FSRU Lampung is located offshore in the Lampung province at the southeast coast of Sumatra, Indonesia.
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