International Seaways (NYSE: INSW) and Hoegh LNG Partners (NYSE:HMLP) are both small-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for International Seaways and Hoegh LNG Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Seaways 0 0 1 0 3.00
Hoegh LNG Partners 0 0 5 0 3.00

International Seaways presently has a consensus price target of $30.00, indicating a potential upside of 78.89%. Hoegh LNG Partners has a consensus price target of $21.63, indicating a potential upside of 23.93%. Given International Seaways’ higher probable upside, equities analysts plainly believe International Seaways is more favorable than Hoegh LNG Partners.

Dividends

Hoegh LNG Partners pays an annual dividend of $1.72 per share and has a dividend yield of 9.9%. International Seaways does not pay a dividend. Hoegh LNG Partners pays out 109.6% 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 International Seaways and Hoegh LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Seaways -23.86% 1.36% 0.95%
Hoegh LNG Partners 38.90% 7.77% 3.30%

Earnings & Valuation

This table compares International Seaways and Hoegh LNG Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
International Seaways $398.32 million 1.22 -$18.22 million ($2.51) -6.68
Hoegh LNG Partners $91.11 million 3.78 $41.37 million $1.57 11.11

Hoegh LNG Partners has lower revenue, but higher earnings than International Seaways. International Seaways is trading at a lower price-to-earnings ratio than Hoegh LNG Partners, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

86.3% of International Seaways shares are held by institutional investors. Comparatively, 64.1% of Hoegh LNG Partners shares are held by institutional investors. 0.5% of International Seaways shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Hoegh LNG Partners beats International Seaways on 8 of the 14 factors compared between the two stocks.

About International Seaways

International Seaways, Inc. and its subsidiaries own and operate a fleet of oceangoing vessels. The Company’s oceangoing vessels engage in the transportation of crude oil and petroleum products in the International Flag trades. The Company’s segments are International Crude Tankers and International Product Carriers. Its 55-vessel fleet consists of Ultra Large Crude Carrier (ULCC), Very Large Crude Carrier (VLCC), Aframax and Panamax crude tankers, as well as long range 1 (LR1), LR2 and medium range (MR) product carriers. Its International Crude Tankers segment is made up of a ULCC and a fleet of VLCCs, Aframaxes, and Panamaxes. Its International Product Carriers segment consists of a fleet of MRs, LR1s and an LR2 engaged in the transportation of crude and refined petroleum products. Through joint venture partnerships (the JVs), it has ownership interests in approximately four liquefied natural gas carriers and approximately two floating storage and offloading service vessels.

About Hoegh LNG Partners

Hoegh LNG Partners LP owns, operates and acquires floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers and other LNG infrastructure assets under long-term charters. The Company’s segments include Majority held FSRUs, Joint venture FSRUs and other. The Majority held FSRUs segment includes the direct financing lease related to the PT Perusahaan Gas Negara (Persero) Tbk (PGN) FSRU Lampung and the operating lease related to the Hoegh Gallant. The Joint venture FSRUs segment includes approximately two FSRUs, including the GDF Suez LNG Supply S.A. (GDF Suez) Neptune and the GDF Suez Cape Ann, which operate under long term time charters. The Company intends to acquire newbuilding FSRUs on long-term charters, rather than FSRUs based on retrofitted, first-generation LNG carriers. The PGN FSRU Lampung is located offshore in the Lampung province at the southeast coast of Sumatra, Indonesia.

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