Gener8 Maritime (NYSE: GNRT) and Hoegh LNG Partners (NYSE:HMLP) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Dividends

Hoegh LNG Partners pays an annual dividend of $1.72 per share and has a dividend yield of 9.6%. Gener8 Maritime does not pay a dividend. 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.

Institutional & Insider Ownership

76.0% of Gener8 Maritime shares are owned by institutional investors. Comparatively, 64.1% of Hoegh LNG Partners shares are owned by institutional investors. 13.7% of Gener8 Maritime shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Gener8 Maritime and Hoegh LNG Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gener8 Maritime $404.62 million 0.90 $67.30 million ($1.41) -3.10
Hoegh LNG Partners $91.11 million 3.88 $41.37 million $1.57 11.40

Gener8 Maritime has higher revenue and earnings than Hoegh LNG Partners. Gener8 Maritime is trading at a lower price-to-earnings ratio than Hoegh LNG Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Gener8 Maritime and Hoegh LNG Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gener8 Maritime 0 0 1 0 3.00
Hoegh LNG Partners 0 0 3 0 3.00

Gener8 Maritime currently has a consensus target price of $10.00, indicating a potential upside of 128.83%. Hoegh LNG Partners has a consensus target price of $21.50, indicating a potential upside of 20.11%. Given Gener8 Maritime’s higher possible upside, research analysts plainly believe Gener8 Maritime is more favorable than Hoegh LNG Partners.

Volatility & Risk

Gener8 Maritime has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Hoegh LNG Partners has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Gener8 Maritime and Hoegh LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gener8 Maritime -34.10% 1.16% 0.56%
Hoegh LNG Partners 38.90% 7.77% 3.30%

Summary

Gener8 Maritime beats Hoegh LNG Partners on 8 of the 15 factors compared between the two stocks.

Gener8 Maritime Company Profile

Gener8 Maritime, Inc. is a provider of international seaborne crude oil transportation services. The Company operates through the transportation of international seaborne crude oil and petroleum products with its fleet of vessels segment. As of March 10, 2017, the Company owned a fleet of 40 tankers on the water, consisting of 24 Very Large Crude Carriers (VLCCs), 10 Suezmax vessels, four Aframax vessels and two Panamax vessels, with an aggregate carrying capacity of 9.4 million deadweight tons (DWT) and one eco VLCC newbuilding. As of March 10, 2017, approximately 77% of its total fleet carrying capacity based on DWT, including newbuildings, was focused on VLCC vessels. As of March 10, 2017, all of its VLCC vessels were deployed in Navig8 Group’s VL8 Pool, all of its Suezmax vessels were deployed in Navig8 Group’s Suez8 Pool and all of its Aframax vessels were deployed in the Navig8 Group’s V8 Pool.

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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