Navigator Holdings (NYSE: NVGS) and Teekay LNG Partners L.P. (NYSE:TGP) are both small-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Navigator Holdings and Teekay LNG Partners L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navigator Holdings 6.44% 2.28% 1.25%
Teekay LNG Partners L.P. 38.28% 6.12% 2.25%

Dividends

Teekay LNG Partners L.P. pays an annual dividend of $0.56 per share and has a dividend yield of 3.1%. Navigator Holdings does not pay a dividend. Teekay LNG Partners L.P. pays out 32.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Navigator Holdings and Teekay LNG Partners L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navigator Holdings 1 0 5 0 2.67
Teekay LNG Partners L.P. 0 3 1 0 2.25

Navigator Holdings presently has a consensus price target of $14.00, suggesting a potential upside of 26.13%. Teekay LNG Partners L.P. has a consensus price target of $16.50, suggesting a potential downside of 10.08%. Given Navigator Holdings’ stronger consensus rating and higher probable upside, equities analysts clearly believe Navigator Holdings is more favorable than Teekay LNG Partners L.P..

Insider & Institutional Ownership

67.0% of Navigator Holdings shares are held by institutional investors. Comparatively, 38.1% of Teekay LNG Partners L.P. shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Navigator Holdings has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Teekay LNG Partners L.P. has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Navigator Holdings and Teekay LNG Partners L.P.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Navigator Holdings $296.90 million 2.08 $119.59 million $0.35 31.72
Teekay LNG Partners L.P. $403.52 million 3.62 $279.27 million $1.71 10.73

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

Summary

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

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.

About Teekay LNG Partners L.P.

Teekay LNG Partners L.P. is an international provider of marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil. The Company’s fleet, excluding newbuildings, consists of approximately 30 LNG carriers (including the six MALT LNG Carriers, four RasGas 3 LNG Carriers, four Angola LNG Carriers and two Exmar LNG Carriers), over 20 LPG carriers (including 20 Exmar LPG Carriers), approximately seven Suezmax-class crude oil tankers and a Handymax product tanker, all of which are double-hulled. Its segments include liquefied gas segment and conventional tanker segment. The liquefied gas segment consists of LNG carriers, LPG carriers and multigas carriers, which can carry both LNG and LPG. The conventional tanker segment consists of approximately seven Suezmax-class crude oil tankers and a Handymax product tanker. Its vessels primarily operate under long-term, fixed-rate charters with energy and utility companies, and Teekay Corporation.

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