Contrasting Tsakos Energy Navigation (TNP) and Hoegh LNG Partners (HMLP)

Tsakos Energy Navigation (NYSE: TNP) and Hoegh LNG Partners (NYSE:HMLP) are both small-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares Tsakos Energy Navigation and Hoegh LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tsakos Energy Navigation 5.64% 2.02% 0.88%
Hoegh LNG Partners 38.90% 7.77% 3.30%

Institutional & Insider Ownership

25.8% of Tsakos Energy Navigation shares are held by institutional investors. Comparatively, 64.0% of Hoegh LNG Partners shares are held by institutional investors. 1.0% of Tsakos Energy Navigation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Tsakos Energy Navigation pays an annual dividend of $0.20 per share and has a dividend yield of 5.6%. Hoegh LNG Partners pays an annual dividend of $1.72 per share and has a dividend yield of 9.6%. Tsakos Energy Navigation pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Tsakos Energy Navigation has increased its dividend for 2 consecutive years. Hoegh LNG Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tsakos Energy Navigation and Hoegh LNG Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tsakos Energy Navigation 0 2 5 0 2.71
Hoegh LNG Partners 0 0 3 0 3.00

Tsakos Energy Navigation currently has a consensus target price of $5.36, indicating a potential upside of 50.06%. Hoegh LNG Partners has a consensus target price of $21.50, indicating a potential upside of 19.44%. Given Tsakos Energy Navigation’s higher possible upside, analysts plainly believe Tsakos Energy Navigation is more favorable than Hoegh LNG Partners.

Valuation & Earnings

This table compares Tsakos Energy Navigation and Hoegh LNG Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tsakos Energy Navigation $481.79 million 0.63 $55.78 million $0.11 32.45
Hoegh LNG Partners $91.11 million 3.91 $41.37 million $1.57 11.47

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

Summary

Hoegh LNG Partners beats Tsakos Energy Navigation on 9 of the 16 factors compared between the two stocks.

Tsakos Energy Navigation Company Profile

Tsakos Energy Navigation Ltd is a provider of international seaborne crude oil and petroleum product transportation services. The Company operates through maritime transportation of liquid energy related products segment. The Company consists of 65 double-hull vessels, constituting a mix of crude tankers, product tankers and liquefied natural gas (LNG) carriers, totaling 7.2 million deadweight. Of these, 47 vessels trade in crude, 13 in products, three are shuttle tankers and two are LNG carriers. Its diversified fleet, which includes VLCC, aframax, panamax, handysize, handymax tankers, LNG carrier and DP2 shuttle tankers, allows it to serve its customers’ international petroleum product and crude oil transportation needs.

Hoegh LNG Partners Company Profile

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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