Golar LNG Partners (NASDAQ: GMLP) and Navigator Holdings (NYSE:NVGS) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitabiliy, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Dividends

Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 11.2%. Navigator Holdings does not pay a dividend. 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 Golar LNG Partners and Navigator Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Golar LNG Partners $441.92 million 3.30 $366.28 million $2.81 7.34
Navigator Holdings $295.06 million 1.93 $123.49 million $0.51 20.10

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

Risk and Volatility

Golar LNG Partners has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Navigator Holdings has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Golar LNG Partners and Navigator Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golar LNG Partners 0 3 1 0 2.25
Navigator Holdings 1 0 4 0 2.60

Golar LNG Partners presently has a consensus target price of $23.25, indicating a potential upside of 12.75%. Navigator Holdings has a consensus target price of $13.33, indicating a potential upside of 30.08%. Given Navigator Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Navigator Holdings is more favorable than Golar LNG Partners.

Profitability

This table compares Golar LNG Partners and Navigator Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golar LNG Partners 40.50% 28.97% 7.83%
Navigator Holdings 9.48% 3.23% 1.81%

Insider & Institutional Ownership

77.5% of Golar LNG Partners shares are held by institutional investors. Comparatively, 68.7% of Navigator Holdings shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Golar LNG Partners beats Navigator Holdings on 9 of the 15 factors compared between the two stocks.

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.

About Navigator Holdings

Navigator Holdings Ltd. is an owner and operator of a fleet of handysize liquefied gas carriers. The Company provides international and regional seaborne transportation services of liquefied petroleum gas (LPG), petrochemical gases and ammonia. As of December 31, 2016, it had 33 semi- or fully-refrigerated handysize liquefied gas carriers. Its handysize liquefied gas carriers are liquefied gas carriers with capabilities between 15,000 and 24,999 cubic meter (cbm). Its handysize liquefied gas carriers can accommodate medium- and long-haul routes. In addition, it had four midsize 37,300 cbm ethylene-capable semi-refrigerated liquefied gas carriers as of December 31, 2016. Its midsize ethylene-capable semi-refrigerated gas carriers enable long-haul transportation of ethane/ethylene. As of December 31, 2016, it also had one 38,000 cbm fully refrigerated gas carrier. The Company carries LPG for international energy companies, state-owned utilities and commodities traders.

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