KNOT Offshore Partners (NYSE: KNOP) and Carnival Cruise Line (NYSE:CCL) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
This table compares KNOT Offshore Partners and Carnival Cruise Line’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KNOT Offshore Partners||36.06%||13.85%||4.99%|
|Carnival Cruise Line||14.73%||11.97%||7.01%|
41.5% of KNOT Offshore Partners shares are held by institutional investors. Comparatively, 77.2% of Carnival Cruise Line shares are held by institutional investors. 23.8% of Carnival Cruise Line shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
KNOT Offshore Partners has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Carnival Cruise Line has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
KNOT Offshore Partners pays an annual dividend of $2.08 per share and has a dividend yield of 9.7%. Carnival Cruise Line pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. 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. Carnival Cruise Line pays out 52.4% of its earnings in the form of a dividend. Carnival Cruise Line has raised its dividend for 3 consecutive years.
Earnings and Valuation
This table compares KNOT Offshore Partners and Carnival Cruise Line’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KNOT Offshore Partners||$219.20 million||3.21||$66.90 million||$2.26||9.51|
|Carnival Cruise Line||$17.51 billion||1.96||$2.61 billion||$3.82||16.80|
Carnival Cruise Line has higher revenue and earnings than KNOT Offshore Partners. KNOT Offshore Partners is trading at a lower price-to-earnings ratio than Carnival Cruise Line, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for KNOT Offshore Partners and Carnival Cruise Line, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KNOT Offshore Partners||0||1||0||0||2.00|
|Carnival Cruise Line||0||6||13||0||2.68|
KNOT Offshore Partners presently has a consensus price target of $21.00, indicating a potential downside of 2.33%. Carnival Cruise Line has a consensus price target of $74.72, indicating a potential upside of 16.18%. Given Carnival Cruise Line’s stronger consensus rating and higher possible upside, analysts plainly believe Carnival Cruise Line is more favorable than KNOT Offshore Partners.
Carnival Cruise Line beats KNOT Offshore Partners on 13 of the 17 factors compared between the two stocks.
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 provides crude oil loading, transportation, and storage services under time charters and bareboat charters. As of June 30, 2017, it had a fleet of 13 shuttle tankers. KNOT Offshore Partners GP LLC serves as the general partner of the company. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.
About Carnival Cruise Line
Carnival Corporation operates as a leisure travel and cruise company. It offers cruises under the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn brands in North America; and AIDA, Costa, P&O Cruises (Australia), Cunard, and P&O Cruises (UK) brands in Europe, Australia, and Asia. The company operates approximately 100 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska; and the Canadian Yukon, which owns and operates hotels, lodges, glass-domed railcars, and motor coaches. In addition, the company is involved in the lease of cruise ships. It sells its cruises primarily through travel agents and tour operators. The company was incorporated in 1972 and is headquartered in Miami, Florida. Carnival Corporation is a subsidiary of Carnival Corporation & plc.
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