Teekay LNG Partners L.P. (NYSE: TGP) and PAA Natural Gas Storage, L.P. (NYSE:PNG) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Valuation and Earnings

This table compares Teekay LNG Partners L.P. and PAA Natural Gas Storage, L.P.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Teekay LNG Partners L.P. $396.44 million 3.55 $140.45 million $0.82 21.52
PAA Natural Gas Storage, L.P. N/A N/A N/A $0.92 N/A

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

Profitability

This table compares Teekay LNG Partners L.P. and PAA Natural Gas Storage, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay LNG Partners L.P. 20.99% 5.39% 1.97%
PAA Natural Gas Storage, L.P. N/A N/A N/A

Institutional & Insider Ownership

37.6% of Teekay LNG Partners L.P. shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Teekay LNG Partners L.P. pays an annual dividend of $0.56 per share and has a dividend yield of 3.2%. PAA Natural Gas Storage, L.P. does not pay a dividend. Teekay LNG Partners L.P. pays out 68.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Teekay LNG Partners L.P. and PAA Natural Gas Storage, L.P., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay LNG Partners L.P. 0 3 0 0 2.00
PAA Natural Gas Storage, L.P. 0 0 0 0 N/A

Teekay LNG Partners L.P. presently has a consensus target price of $15.33, indicating a potential downside of 13.13%.

Summary

Teekay LNG Partners L.P. beats PAA Natural Gas Storage, L.P. on 6 of the 8 factors compared between the two stocks.

Teekay LNG Partners L.P. Company Profile

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.

PAA Natural Gas Storage, L.P. Company Profile

PAA Natural Gas Storage, L.P. is engaged in the business of acquisition, development, ownership, operation and commercial management of natural gas storage facilities. As of December 31, 2012, the Company owned and operated three natural gas storage facilities located in Louisiana, Mississippi and Michigan. The Company also leases storage capacity and pipelines transportation capacity from third parties. The Company provides natural gas storage services to a mix of customers, including local gas distribution company’s liquefied natural gas (LNG), electric utilities, pipelines, direct industrial users, electric power generators, marketers, producers, LNG exporters and affiliates of such entities. In December 31, 2013, Plains All American Pipeline, L.P. (Plains) completed the merger of PAA Natural Gas Storage, L.P with a wholly owned subsidiary of Plains, with Plains surviving the merger as a wholly owned subsidiary of PAA.

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