Analyzing FreeSeas (FREEF) & KNOT Offshore Partners (KNOP)

FreeSeas (OTCMKTS:FREEF) and KNOT Offshore Partners (NYSE:KNOP) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings

This table compares FreeSeas and KNOT Offshore Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FreeSeas N/A N/A N/A N/A N/A
KNOT Offshore Partners $219.20 million 2.81 $66.90 million $2.26 8.33

KNOT Offshore Partners has higher revenue and earnings than FreeSeas.

Profitability

This table compares FreeSeas and KNOT Offshore Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FreeSeas N/A N/A N/A
KNOT Offshore Partners 34.05% 14.16% 4.93%

Dividends

KNOT Offshore Partners pays an annual dividend of $2.08 per share and has a dividend yield of 11.1%. FreeSeas does not pay a dividend. KNOT Offshore Partners pays out 92.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

39.9% of KNOT Offshore Partners shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings for FreeSeas and KNOT Offshore Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FreeSeas 0 0 0 0 N/A
KNOT Offshore Partners 0 1 0 0 2.00

KNOT Offshore Partners has a consensus price target of $21.00, suggesting a potential upside of 11.58%. Given KNOT Offshore Partners’ higher possible upside, analysts plainly believe KNOT Offshore Partners is more favorable than FreeSeas.

Summary

KNOT Offshore Partners beats FreeSeas on 7 of the 8 factors compared between the two stocks.

FreeSeas Company Profile

FreeSeas Inc., a drybulk shipping company, engages in the transportation of drybulk cargoes. The company transports various drybulk commodities, including iron ore, grain, and coal, as well as bauxite, phosphate, fertilizers, steel products, cement, sugar, and rice. It owns and operates a handysize dry bulk carrier. As of April 20, 2018, it operated one handysize drybulk carrier with a capacity of approximately 30,838 deadweight tons. The company was formerly known as Adventure Holdings S.A. and changed its name to FreeSeas Inc. in April 2005. FreeSeas Inc. was founded in 2004 and is based in Athens, Greece.

KNOT Offshore Partners Company Profile

KNOT Offshore Partners LP owns and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company loading, transportation and storage of their crude oil services under time charters and bareboat charters. As of April 25, 2018, it had a fleet of 16 shuttle tankers. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.

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