Nordic American Tankers Limited (NYSE: NAT) and Hoegh LNG Partners (NASDAQ:HMLP) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Institutional and Insider Ownership

23.3% of Nordic American Tankers Limited shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nordic American Tankers Limited and Hoegh LNG Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nordic American Tankers Limited 3 4 0 0 1.57
Hoegh LNG Partners 0 0 5 0 3.00

Nordic American Tankers Limited currently has a consensus target price of $6.92, suggesting a potential upside of 31.75%. Hoegh LNG Partners has a consensus target price of $21.63, suggesting a potential upside of 17.21%. Given Nordic American Tankers Limited’s higher probable upside, analysts clearly believe Nordic American Tankers Limited is more favorable than Hoegh LNG Partners.

Valuation and Earnings

This table compares Nordic American Tankers Limited and Hoegh LNG Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nordic American Tankers Limited $313.36 million 1.71 $89.71 million $0.02 262.50
Hoegh LNG Partners $116.75 million 5.20 $89.52 million N/A N/A

Nordic American Tankers Limited has higher revenue and earnings than Hoegh LNG Partners.

Dividends

Nordic American Tankers Limited pays an annual dividend of $0.40 per share and has a dividend yield of 7.6%. Hoegh LNG Partners does not pay a dividend. Nordic American Tankers Limited pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Nordic American Tankers Limited and Hoegh LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nordic American Tankers Limited 0.06% 0.25% 0.16%
Hoegh LNG Partners 34.87% 13.48% 4.54%

Summary

Hoegh LNG Partners beats Nordic American Tankers Limited on 7 of the 13 factors compared between the two stocks.

Nordic American Tankers Limited Company Profile

Nordic American Tankers Limited is an international tanker company. The Company owns approximately 26 vessels, including approximately two new buildings under construction, of approximately 156,000 deadweight tonnage (dwt) each. The Company’s Suezmaxes tankers can carry over one million barrels of oil. The vessels in the Company’s fleet are homogenous and interchangeable. The Company’s vessels are employed in the spot market. The Company’s vessels include Nordic Harrier, Nordic Hawk, Nordic Hunter, Nordic Voyager, Nordic Fighter, Nordic Freedom, Nordic Discovery, Nordic Saturn, Nordic Jupiter, Nordic Moon, Nordic Apollo, Nordic Cosmos, Nordic Sprite, Nordic Mistral, Nordic Passat, Nordic Vega, Nordic Breeze, Nordic Zenith, Nordic Sprinter, Nordic Skier and Nordic Light.

Hoegh LNG Partners Company Profile

Hoegh LNG Partners LP owns, operates and acquires floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers and other LNG infrastructure assets under long-term charters. The Company’s segments include Majority held FSRUs, Joint venture FSRUs and other. The Majority held FSRUs segment includes the direct financing lease related to the PT Perusahaan Gas Negara (Persero) Tbk (PGN) FSRU Lampung and the operating lease related to the Hoegh Gallant. The Joint venture FSRUs segment includes approximately two FSRUs, including the GDF Suez LNG Supply S.A. (GDF Suez) Neptune and the GDF Suez Cape Ann, which operate under long term time charters. The Company intends to acquire newbuilding FSRUs on long-term charters, rather than FSRUs based on retrofitted, first-generation LNG carriers. The PGN FSRU Lampung is located offshore in the Lampung province at the southeast coast of Sumatra, Indonesia.

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