Teekay Tankers (NYSE: TNK) is one of 53 public companies in the “Oil & Gas Transportation Services” industry, but how does it compare to its competitors? We will compare Teekay Tankers to similar businesses based off the strength of its institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider and Institutional Ownership

39.0% of Teekay Tankers shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are owned by company insiders. 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.

Profitability

This table compares Teekay Tankers and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay Tankers -7.38% 0.39% 0.19%
Teekay Tankers Competitors 17.49% 21.92% 5.61%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Teekay Tankers and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay Tankers 1 2 0 0 1.67
Teekay Tankers Competitors 379 2057 2461 109 2.46

Teekay Tankers currently has a consensus price target of $2.40, indicating a potential upside of 71.43%. All “Oil & Gas Transportation Services” companies have a potential upside of 21.22%. Given Teekay Tankers’ higher possible upside, research analysts plainly believe Teekay Tankers is more favorable than its competitors.

Valuation and Earnings

This table compares Teekay Tankers and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Teekay Tankers $447.92 million $107.40 million -7.37
Teekay Tankers Competitors $5.61 billion $1.30 billion 36.37

Teekay Tankers’ competitors have higher revenue and earnings than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently the more affordable than other companies in its industry.

Dividends

Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 8.6%. Teekay Tankers pays out -63.2% of its earnings in the form of a dividend. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.6% and pay out 172.5% of their earnings in the form of a dividend. Teekay Tankers is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Teekay Tankers has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, Teekay Tankers’ competitors have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Summary

Teekay Tankers competitors beat Teekay Tankers on 10 of the 15 factors compared.

About Teekay Tankers

Teekay Tankers Ltd. is an international provider of marine transportation to the oil industries. The Company’s business is to own crude oil and product tankers. The Company has two segments: conventional tanker and ship-to-ship transfer. Its conventional tanker segment consists of the operation of all of its tankers, including those employed on full service lightering contracts. Its ship-to-ship transfer segment consists of its lightering support services, including those provided to the Company’s conventional tanker segment as part of full service lightering operations and other related services. Its operations are managed by Teekay Tankers Management Services Ltd., which provides the Company with commercial, technical, administrative and strategic services. Its fleet consists of approximately 60 conventional vessels (including over 10 in-chartered vessels and an approximately 50%-owned very large crude carrier (VLCC)) and approximately six ship-to-ship (STS) support vessels.

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