Rose Rock Midstream (NYSE: RRMS) and Ship Finance International Limited (NYSE:SFL) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitabiliy, dividends, risk and institutional ownership.

Volatility & Risk

Rose Rock Midstream has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, Ship Finance International Limited has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Profitability

This table compares Rose Rock Midstream and Ship Finance International Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rose Rock Midstream 5.87% 8.49% 3.12%
Ship Finance International Limited 33.62% 12.65% 4.90%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rose Rock Midstream and Ship Finance International Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rose Rock Midstream 0 0 0 0 N/A
Ship Finance International Limited 0 2 0 0 2.00

Ship Finance International Limited has a consensus price target of $15.50, suggesting a potential upside of 16.10%. Given Ship Finance International Limited’s higher probable upside, analysts plainly believe Ship Finance International Limited is more favorable than Rose Rock Midstream.

Institutional and Insider Ownership

26.9% of Ship Finance International Limited shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Rose Rock Midstream and Ship Finance International Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rose Rock Midstream N/A N/A N/A N/A N/A
Ship Finance International Limited $391.64 million 3.19 $249.26 million $1.43 9.34

Ship Finance International Limited has higher revenue and earnings than Rose Rock Midstream.

Dividends

Ship Finance International Limited pays an annual dividend of $1.80 per share and has a dividend yield of 13.5%. Rose Rock Midstream does not pay a dividend. Ship Finance International Limited pays out 125.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rose Rock Midstream has increased its dividend for 5 consecutive years and Ship Finance International Limited has increased its dividend for 5 consecutive years.

Summary

Ship Finance International Limited beats Rose Rock Midstream on 7 of the 9 factors compared between the two stocks.

Rose Rock Midstream Company Profile

Rose Rock Midstream, L.P. owns, operates, develops and acquires diversified portfolio of midstream energy assets. The Company is engaged in providing midstream energy related services, such as crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. Its segments include Transportation, Facilities, and Supply and Logistics. Its Transportation segment operates crude oil pipelines and truck transportation businesses in the United States. Its Facilities segment operates crude oil storage and terminal businesses in the United States. Its Supply and Logistics segment operates a crude oil marketing and blending business in the United States. The Company operates in the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin (DJ Basin) and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and Mississippi Lime Play in the Mid-Continent region.

Ship Finance International Limited Company Profile

Ship Finance International Limited is a holding, and international ship owning and chartering company. The Company is engaged in the ownership and operation of vessels and offshore related assets, and also involved in the charter, purchase and sale of assets. Its assets consist of approximately 20 oil tankers, over 20 dry bulk carriers, approximately 20 container vessels, including a newbuilding, two car carriers, two jack-up drilling rigs, two ultra-deepwater drilling units, five offshore supply vessels, two chemical tankers and two newbuilding oil product tankers. Its oil tankers, chemical tankers and oil product tankers are all double-hull vessels. It has over nine asset types, including crude oil tankers, oil product tankers, chemical tankers, container vessels, car carriers, dry bulk carriers, jack-up drilling rigs, ultra-deepwater drilling units and offshore supply vessels. Its assets consist of a fleet of Suezmax tankers, crude carriers and oil/bulk/ore carriers.

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