Financial Contrast: Capital Product Partners (CPLP) and Hornbeck Offshore Services (HOS)

Capital Product Partners (NASDAQ: CPLP) and Hornbeck Offshore Services (NYSE:HOS) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Capital Product Partners and Hornbeck Offshore Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital Product Partners 0 0 3 0 3.00
Hornbeck Offshore Services 0 3 0 0 2.00

Capital Product Partners currently has a consensus price target of $5.00, indicating a potential upside of 58.73%. Hornbeck Offshore Services has a consensus price target of $3.50, indicating a potential downside of 5.66%. Given Capital Product Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Capital Product Partners is more favorable than Hornbeck Offshore Services.

Volatility & Risk

Capital Product Partners has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Hornbeck Offshore Services has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Valuation and Earnings

This table compares Capital Product Partners and Hornbeck Offshore Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capital Product Partners $241.62 million 1.65 $52.48 million $0.28 11.25
Hornbeck Offshore Services $224.30 million 0.61 -$63.84 million ($2.33) -1.59

Capital Product Partners has higher revenue and earnings than Hornbeck Offshore Services. Hornbeck Offshore Services is trading at a lower price-to-earnings ratio than Capital Product Partners, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

19.3% of Capital Product Partners shares are owned by institutional investors. Comparatively, 77.6% of Hornbeck Offshore Services shares are owned by institutional investors. 7.1% of Hornbeck Offshore Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Capital Product Partners pays an annual dividend of $0.32 per share and has a dividend yield of 10.2%. Hornbeck Offshore Services does not pay a dividend. Capital Product Partners pays out 114.3% 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 Capital Product Partners and Hornbeck Offshore Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital Product Partners 17.17% 4.70% 2.67%
Hornbeck Offshore Services -48.34% -7.00% -3.43%

Summary

Capital Product Partners beats Hornbeck Offshore Services on 12 of the 15 factors compared between the two stocks.

Capital Product Partners Company Profile

Capital Product Partners L.P. is an international owner of tanker, container and drybulk vessels. The Company’s fleet consisted of 36 high specification vessels with an average age of approximately 7.4 years, as of December 31, 2016. As of December 31, 2016, its fleet consisted of four Suezmax crude oil tankers, 21 medium range product tankers, 10 post-panamax container carrier vessels and one Capesize bulk carrier. The Company’s vessels are capable of carrying a range of cargoes, including crude oil, refined oil products, such as gasoline, diesel, fuel oil and jet fuel, edible oils and certain chemicals, such as ethanol, as well as dry cargo and containerized goods. Its fleet consists of product tankers, such as Aktoras, Aiolos, Agisilaos, Akeraios and Apostolos; crude tankers, such as Amoureux, Aias, Amore Mio II and Miltiadis M II; drybulk vessels, such as Cape Agamemnon, and container carrier vessels, such as Archimidis, Agamemnon and Hyundai Platinum.

Hornbeck Offshore Services Company Profile

Hornbeck Offshore Services Inc. provides marine transportation, subsea installation and accommodation support services to exploration and production, oilfield service, offshore construction and the United States military customers. The Company focuses on providing marine solutions for the deepwater and ultradeepwater energy industry in domestic and select foreign locations. The Company, through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico, Latin America and selected international markets. Its OSVs and MPSVs support the deep-well, deepwater and ultra-deepwater activities of the offshore oil and gas industry. It provides vessel management services for other vessel owners, such as crewing, daily operational management and maintenance activities.

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