Reviewing Capital Product Partners L.P. (CPLP) & International Seaways (INSW)
Capital Product Partners L.P. (NASDAQ: CPLP) and International Seaways (NYSE:INSW) are both small-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Capital Product Partners L.P. pays an annual dividend of $0.32 per share and has a dividend yield of 9.0%. International Seaways does not pay a dividend. Capital Product Partners L.P. pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations and price targets for Capital Product Partners L.P. and International Seaways, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capital Product Partners L.P.||0||0||4||0||3.00|
Capital Product Partners L.P. presently has a consensus price target of $5.00, indicating a potential upside of 40.85%. International Seaways has a consensus price target of $30.00, indicating a potential upside of 59.32%. Given International Seaways’ higher probable upside, analysts clearly believe International Seaways is more favorable than Capital Product Partners L.P..
Valuation & Earnings
This table compares Capital Product Partners L.P. and International Seaways’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Capital Product Partners L.P.||$245.00 million||1.79||$160.90 million||$0.30||11.83|
|International Seaways||$327.29 million||1.68||$85.71 million||($3.50)||-5.38|
Capital Product Partners L.P. has higher revenue, but lower earnings than International Seaways. International Seaways is trading at a lower price-to-earnings ratio than Capital Product Partners L.P., indicating that it is currently the more affordable of the two stocks.
This table compares Capital Product Partners L.P. and International Seaways’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capital Product Partners L.P.||18.20%||4.95%||2.80%|
Insider and Institutional Ownership
17.6% of Capital Product Partners L.P. shares are owned by institutional investors. Comparatively, 86.3% of International Seaways shares are owned by institutional investors. 0.5% of International Seaways shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Capital Product Partners L.P. beats International Seaways on 8 of the 14 factors compared between the two stocks.
Capital Product Partners L.P. Company Profile
Capital Product Partners L.P. is an international owner of tanker, container and drybulk vessels. The Company’s fleet consisted of 36 high specification vessels with an average age of approximately 7.4 years, as of December 31, 2016. As of December 31, 2016, its fleet consisted of four Suezmax crude oil tankers, 21 medium range product tankers, 10 post-panamax container carrier vessels and one Capesize bulk carrier. The Company’s vessels are capable of carrying a range of cargoes, including crude oil, refined oil products, such as gasoline, diesel, fuel oil and jet fuel, edible oils and certain chemicals, such as ethanol, as well as dry cargo and containerized goods. Its fleet consists of product tankers, such as Aktoras, Aiolos, Agisilaos, Akeraios and Apostolos; crude tankers, such as Amoureux, Aias, Amore Mio II and Miltiadis M II; drybulk vessels, such as Cape Agamemnon, and container carrier vessels, such as Archimidis, Agamemnon and Hyundai Platinum.
International Seaways Company Profile
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.
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