Dynagas LNG Partners (NYSE: DLNG) and Golar LNG Partners (NASDAQ:GMLP) are both small-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
This table compares Dynagas LNG Partners and Golar LNG Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dynagas LNG Partners||26.03%||19.22%||5.02%|
|Golar LNG Partners||43.94%||31.69%||9.02%|
Institutional and Insider Ownership
19.6% of Dynagas LNG Partners shares are held by institutional investors. Comparatively, 45.5% of Golar LNG Partners shares are held by institutional investors. 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.
Volatility and Risk
Dynagas LNG Partners has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Golar LNG Partners has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
This is a breakdown of recent ratings for Dynagas LNG Partners and Golar LNG Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynagas LNG Partners||0||2||3||0||2.60|
|Golar LNG Partners||0||3||1||0||2.25|
Dynagas LNG Partners presently has a consensus target price of $17.20, indicating a potential upside of 24.73%. Golar LNG Partners has a consensus target price of $23.25, indicating a potential upside of 0.61%. Given Dynagas LNG Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Dynagas LNG Partners is more favorable than Golar LNG Partners.
Dynagas LNG Partners pays an annual dividend of $1.69 per share and has a dividend yield of 12.3%. Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 10.0%. Dynagas LNG Partners pays out 176.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golar LNG Partners pays out 82.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Dynagas LNG Partners and Golar LNG Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dynagas LNG Partners||$155.54 million||3.15||$111.30 million||$0.96||14.36|
|Golar LNG Partners||$466.14 million||3.24||$388.08 million||$2.81||8.22|
Golar LNG Partners has higher revenue and earnings than Dynagas LNG Partners. Golar LNG Partners is trading at a lower price-to-earnings ratio than Dynagas LNG Partners, indicating that it is currently the more affordable of the two stocks.
Golar LNG Partners beats Dynagas LNG Partners on 9 of the 15 factors compared between the two stocks.
About Dynagas LNG Partners
Dynagas LNG Partners LP is a limited partnership, which focuses on owning and operating liquid natural gas (LNG) carriers. The Company’s vessels are employed on multi-year time charters with international energy companies. As of December 31, 2016, the Company owned and operated a fleet of six LNG carriers, consisting of the three LNG carriers in its Initial Fleet, the Clean Energy, the Ob River and the Amur River, and three 2013-built Ice Class LNG carriers that the Company acquired from its Sponsor the Arctic Aurora, the Yenisei River, and the Lena River (collectively referred as its Fleet). The vessels in its Fleet have an average age of 6.6 years and are contracted under multi-year charters with Shell, Gazprom, Statoil and Yamal with an average remaining charter term, as of March 17, 2017, of approximately 10.6 years, including the charter agreements relating to the Yenisei River and the Lena River with Yamal. The Company’s Fleet is managed by its manager, Dynagas Ltd.
About Golar LNG Partners
Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term time charters. The Company operates through the LNG market segment. The Company’s fleet consists of approximately six FSRUs and over four LNG carriers. The Company’s FSRU vessels include Golar Spirit, Golar Winter, Golar Freeze, NR Satu, Golar Igloo and Golar Eskimo. Its FSRU vessels have a total capacity of approximately 846,000 cubic meters. The Company’s LNG carriers include Golar Mazo, Methane Princess, Golar Grand and Golar Maria. Its LNG carriers have a total capacity of over 564,400 cubic meters.
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