Dynagas LNG Partners (NYSE: DLNG) and GasLog LP. (NYSE:GLOG) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Volatility and Risk

Dynagas LNG Partners has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, GasLog LP. has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Dynagas LNG Partners and GasLog LP.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynagas LNG Partners 37.68% 23.74% 6.28%
GasLog LP. 0.70% 0.50% 0.17%

Analyst Recommendations

This is a summary of current ratings and target prices for Dynagas LNG Partners and GasLog LP., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynagas LNG Partners 0 3 3 0 2.50
GasLog LP. 0 1 6 0 2.86

Dynagas LNG Partners presently has a consensus target price of $16.25, suggesting a potential upside of 13.16%. GasLog LP. has a consensus target price of $19.14, suggesting a potential upside of 12.61%. Given Dynagas LNG Partners’ higher probable upside, equities analysts clearly believe Dynagas LNG Partners is more favorable than GasLog LP..

Dividends

Dynagas LNG Partners pays an annual dividend of $1.69 per share and has a dividend yield of 11.8%. GasLog LP. pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. Dynagas LNG Partners pays out 107.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. GasLog LP. pays out -800.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Dynagas LNG Partners and GasLog LP.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dynagas LNG Partners $166.20 million 3.07 $128.29 million $1.58 9.09
GasLog LP. $505.42 million 2.71 $340.58 million ($0.07) -242.86

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

Institutional & Insider Ownership

21.0% of Dynagas LNG Partners shares are owned by institutional investors. Comparatively, 48.6% of GasLog LP. shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dynagas LNG Partners Company Profile

Dynagas LNG Partners LP is a limited partnership, which focuses on owning and operating liquid natural gas (LNG) carriers. The Company’s vessels are employed on multi-year time charters with international energy companies. As of December 31, 2016, the Company owned and operated a fleet of six LNG carriers, consisting of the three LNG carriers in its Initial Fleet, the Clean Energy, the Ob River and the Amur River, and three 2013-built Ice Class LNG carriers that the Company acquired from its Sponsor the Arctic Aurora, the Yenisei River, and the Lena River (collectively referred as its Fleet). The vessels in its Fleet have an average age of 6.6 years and are contracted under multi-year charters with Shell, Gazprom, Statoil and Yamal with an average remaining charter term, as of March 17, 2017, of approximately 10.6 years, including the charter agreements relating to the Yenisei River and the Lena River with Yamal. The Company’s Fleet is managed by its manager, Dynagas Ltd.

GasLog LP. Company Profile

GasLog Ltd. is an international owner, operator and manager of liquefied natural gas (LNG) carriers. The Company provides support to international energy companies as part of their LNG logistics chain. The Company’s owned consolidated fleet consists of 27 LNG carriers, including 22 ships in operation and five LNG carriers on order. The Company also had four LNG carriers operating under its technical management for third parties. GasLog Partners LP, a master limited partnership formed by the Company, owned a further of approximately 10 LNG carriers. Its on the water fleet includes Methane Lydon Volney, GasLog Savannah, GasLog Savannah, GasLog Chelsea, GasLog Skagen, Solaris and GasLog Saratoga. Its new builds vessels include Hull No. 2130, Hull No. 2800 and Hull No. 2801. Its GasLog Partners Fleet includes GasLog Seattle, GasLog Shanghai, GasLog Santiago, GasLog Sydney and Methane Jane Elizabeth. Its managed fleet includes Methane Julia Louise and Methane Nile Eagle.

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