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

Earnings & Valuation

This table compares Teekay Tankers and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Teekay Tankers $447.92 million $107.40 million -8.53
Teekay Tankers Competitors $5.63 billion $1.30 billion 37.41

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

Insider & Institutional Ownership

39.0% of Teekay Tankers shares are held by institutional investors. Comparatively, 57.2% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.3% of shares of all “Oil & Gas Transportation Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 7.4%. 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 6.5% and pay out 171.6% of their earnings in the form of a dividend. Teekay Tankers is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings for Teekay Tankers and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay Tankers 1 2 0 0 1.67
Teekay Tankers Competitors 382 2065 2470 109 2.46

Teekay Tankers presently has a consensus target price of $2.40, suggesting a potential upside of 48.15%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 19.49%. Given Teekay Tankers’ higher possible upside, research analysts clearly believe Teekay Tankers is more favorable than its peers.

Volatility and Risk

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

Profitability

This table compares Teekay Tankers and its peers’ 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 16.87% 14.36% 5.47%

Summary

Teekay Tankers peers 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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