Analyzing KNOT Offshore Partners (NYSE:KNOP) & A.P. Moller-Maersk (OTCMKTS:AMKBY)

KNOT Offshore Partners (NYSE:KNOP) and A.P. Moller-Maersk (OTCMKTS:AMKBY) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Valuation and Earnings

This table compares KNOT Offshore Partners and A.P. Moller-Maersk”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KNOT Offshore Partners	$372.42 million	0.93	$22.96 million	$0.54	18.98
A.P. Moller-Maersk	$53.99 billion	0.76	$2.73 billion	$0.53	24.34

A.P. Moller-Maersk has higher revenue and earnings than KNOT Offshore Partners. KNOT Offshore Partners is trading at a lower price-to-earnings ratio than A.P. Moller-Maersk, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for KNOT Offshore Partners and A.P. Moller-Maersk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KNOT Offshore Partners	1	2	1	1	2.40
A.P. Moller-Maersk	6	6	0	1	1.69

KNOT Offshore Partners currently has a consensus price target of $14.00, suggesting a potential upside of 36.59%. Given KNOT Offshore Partners’ stronger consensus rating and higher possible upside, research analysts plainly believe KNOT Offshore Partners is more favorable than A.P. Moller-Maersk.

Risk & Volatility

KNOT Offshore Partners has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, A.P. Moller-Maersk has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Profitability

This table compares KNOT Offshore Partners and A.P. Moller-Maersk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KNOT Offshore Partners	4.92%	6.36%	2.05%
A.P. Moller-Maersk	3.01%	3.17%	2.04%

Institutional and Insider Ownership

26.8% of KNOT Offshore Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

KNOT Offshore Partners pays an annual dividend of $0.30 per share and has a dividend yield of 2.9%. A.P. Moller-Maersk pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. KNOT Offshore Partners pays out 55.6% of its earnings in the form of a dividend. A.P. Moller-Maersk pays out 37.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

KNOT Offshore Partners beats A.P. Moller-Maersk on 10 of the 15 factors compared between the two stocks.

About KNOT Offshore Partners

KNOT Offshore Partners LP acquires, owns, and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company provides loading, transportation, and discharge of crude oil under time charters and bareboat charters. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.

About A.P. Moller-Maersk

A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.