Critical Analysis: BP (NYSE:BP) vs. Dynagas LNG Partners (NYSE:DLNG)

Dynagas LNG Partners (NYSE:DLNG) and BP (NYSE:BP) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Volatility and Risk

Dynagas LNG Partners has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, BP has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.

Dividends

Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.3%. BP pays an annual dividend of $1.98 per share and has a dividend yield of 4.8%. Dynagas LNG Partners pays out 13.2% of its earnings in the form of a dividend. BP pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynagas LNG Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Dynagas LNG Partners and BP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynagas LNG Partners	$156.62 million	0.87	$61.60 million	$1.52	2.47
BP	$192.55 billion	0.57	$55.00 million	$2.05	20.30

Dynagas LNG Partners has higher earnings, but lower revenue than BP. Dynagas LNG Partners is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Dynagas LNG Partners and BP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynagas LNG Partners	0	1	0	0	2.00
BP	2	9	12	0	2.43

BP has a consensus target price of $46.36, suggesting a potential upside of 11.43%. Given BP’s stronger consensus rating and higher probable upside, analysts clearly believe BP is more favorable than Dynagas LNG Partners.

Insider & Institutional Ownership

11.0% of BP shares are held by institutional investors. 1.0% of BP 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.

Profitability

This table compares Dynagas LNG Partners and BP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynagas LNG Partners	41.60%	13.59%	6.68%
BP	2.49%	16.63%	4.39%

Summary

BP beats Dynagas LNG Partners on 9 of the 16 factors compared between the two stocks.

About Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.

About BP

BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.