Flex LNG (FLNG) & Its Competitors Head-To-Head Review

Flex LNG (NYSE:FLNG) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its peers? We will compare Flex LNG to similar businesses based on the strength of its dividends, analyst recommendations, institutional ownership, valuation, risk, profitability and earnings.

Profitability

This table compares Flex LNG and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flex LNG	28.50%	14.88%	4.07%
Flex LNG Competitors	-455.84%	19.30%	6.64%

Dividends

Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 11.8%. Flex LNG pays out 157.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.0% and pay out -134.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Flex LNG and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex LNG	2	1	0	0	1.33
Flex LNG Competitors	5994	27032	40912	2431	2.52

Flex LNG presently has a consensus price target of $25.00, indicating a potential downside of 1.47%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.43%. Given Flex LNG’s peers stronger consensus rating and higher possible upside, analysts plainly believe Flex LNG has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Flex LNG and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Flex LNG	$347.64 million	$74.82 million	13.35
Flex LNG Competitors	$11.73 billion	$5.51 billion	-1.24

Flex LNG’s peers have higher revenue and earnings than Flex LNG. Flex LNG is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.3% of Flex LNG shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Flex LNG has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Flex LNG’s peers have a beta of -3.76, indicating that their average stock price is 476% less volatile than the S&P 500.

Summary

Flex LNG peers beat Flex LNG on 11 of the 15 factors compared.

About Flex LNG

Flex LNG Ltd. is an international shipping company focused on the transportation of liquefied natural gas (LNG). The company owns and operates LNG carriers that move natural gas by sea between producers and customers around the world. Flex LNG charters its vessels to energy companies and other participants in the LNG market. Its fleet includes ships equipped with modern propulsion technologies designed for efficient LNG transportation. Founded in 2006, Flex LNG is incorporated in Bermuda and has operations managed from Oslo, Norway.