Head-To-Head Comparison: Teekay Tankers (TNK) vs. Enable Midstream Partners, (ENBL)
Teekay Tankers (NYSE: TNK) and Enable Midstream Partners, (NYSE:ENBL) are both large-cap oil & gas transportation services – nec companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Institutional and Insider Ownership
39.9% of Teekay Tankers shares are held by institutional investors. Comparatively, 18.0% of Enable Midstream Partners, shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Teekay Tankers has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500. Comparatively, Enable Midstream Partners, has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.
Valuation and Earnings
This table compares Teekay Tankers and Enable Midstream Partners,’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Teekay Tankers||$300.30 million||0.71||$62.85 million||($0.19)||-7.84|
|Enable Midstream Partners,||$2.27 billion||2.94||$312.00 million||$0.84||18.39|
Enable Midstream Partners, has higher revenue and earnings than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than Enable Midstream Partners,, indicating that it is currently the more affordable of the two stocks.
Teekay Tankers pays an annual dividend of $0.12 per share and has a dividend yield of 8.1%. Enable Midstream Partners, pays an annual dividend of $1.27 per share and has a dividend yield of 8.2%. Teekay Tankers pays out -63.2% of its earnings in the form of a dividend. Enable Midstream Partners, pays out 151.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners, has raised its dividend for 2 consecutive years. Enable Midstream Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and recommmendations for Teekay Tankers and Enable Midstream Partners,, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enable Midstream Partners,||1||4||3||0||2.25|
Teekay Tankers presently has a consensus price target of $1.80, indicating a potential upside of 20.81%. Given Teekay Tankers’ higher possible upside, analysts plainly believe Teekay Tankers is more favorable than Enable Midstream Partners,.
This table compares Teekay Tankers and Enable Midstream Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enable Midstream Partners,||14.82%||5.24%||3.46%|
Enable Midstream Partners, beats Teekay Tankers on 11 of the 16 factors compared between the two stocks.
Teekay Tankers Company Profile
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.
Enable Midstream Partners, Company Profile
Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states.
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