Critical Analysis: VOC Energy Trust (NYSE:VOC) and BW LPG (NYSE:BWLP)

BW LPG (NYSE:BWLP) and VOC Energy Trust (NYSE:VOC) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Profitability

This table compares BW LPG and VOC Energy Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BW LPG	12.64%	22.48%	13.50%
VOC Energy Trust	91.51%	68.92%	68.92%

Dividends

BW LPG pays an annual dividend of $3.80 per share and has a dividend yield of 17.6%. VOC Energy Trust pays an annual dividend of $0.76 per share and has a dividend yield of 25.8%. BW LPG pays out 129.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VOC Energy Trust pays out 185.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings for BW LPG and VOC Energy Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BW LPG	0	1	4	0	2.80
VOC Energy Trust	1	0	0	0	1.00

Earnings & Valuation

This table compares BW LPG and VOC Energy Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BW LPG	$3.58 billion	0.91	$242.31 million	$2.94	7.35
VOC Energy Trust	$8.62 million	5.81	$7.39 million	$0.41	7.18

BW LPG has higher revenue and earnings than VOC Energy Trust. VOC Energy Trust is trading at a lower price-to-earnings ratio than BW LPG, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

BW LPG has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, VOC Energy Trust has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Summary

BW LPG beats VOC Energy Trust on 8 of the 13 factors compared between the two stocks.

About BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.

About VOC Energy Trust

VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. VOC Energy Trust was incorporated in 2010 and is based in Houston, Texas.