Analyzing Ship Finance International (SFL) and World Point Terminals (WPT)
Ship Finance International (NYSE: SFL) and World Point Terminals (NYSE:WPT) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Insider & Institutional Ownership
33.7% of Ship Finance International shares are owned by institutional investors. Comparatively, 13.2% of World Point Terminals shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Ship Finance International has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, World Point Terminals has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
Ship Finance International pays an annual dividend of $1.40 per share and has a dividend yield of 9.4%. World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Ship Finance International pays out 159.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. World Point Terminals pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ship Finance International has increased its dividend for 6 consecutive years. Ship Finance International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and target prices for Ship Finance International and World Point Terminals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ship Finance International||1||2||1||0||2.00|
|World Point Terminals||0||2||0||0||2.00|
Ship Finance International currently has a consensus price target of $14.75, indicating a potential downside of 0.67%. World Point Terminals has a consensus price target of $17.00, indicating a potential downside of 1.68%. Given Ship Finance International’s higher possible upside, analysts clearly believe Ship Finance International is more favorable than World Point Terminals.
Valuation and Earnings
This table compares Ship Finance International and World Point Terminals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ship Finance International||$380.88 million||4.01||$101.20 million||$0.88||16.88|
|World Point Terminals||N/A||N/A||N/A||$1.04||16.63|
Ship Finance International has higher revenue and earnings than World Point Terminals. World Point Terminals is trading at a lower price-to-earnings ratio than Ship Finance International, indicating that it is currently the more affordable of the two stocks.
This table compares Ship Finance International and World Point Terminals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ship Finance International||26.57%||10.08%||3.69%|
|World Point Terminals||37.15%||19.57%||18.37%|
Ship Finance International beats World Point Terminals on 8 of the 13 factors compared between the two stocks.
Ship Finance International Company Profile
Ship Finance International Limited is a holding, and international ship owning and chartering company. The Company is engaged in the ownership and operation of vessels and offshore related assets, and also involved in the charter, purchase and sale of assets. Its assets consist of approximately 20 oil tankers, over 20 dry bulk carriers, approximately 20 container vessels, including a newbuilding, two car carriers, two jack-up drilling rigs, two ultra-deepwater drilling units, five offshore supply vessels, two chemical tankers and two newbuilding oil product tankers. Its oil tankers, chemical tankers and oil product tankers are all double-hull vessels. It has over nine asset types, including crude oil tankers, oil product tankers, chemical tankers, container vessels, car carriers, dry bulk carriers, jack-up drilling rigs, ultra-deepwater drilling units and offshore supply vessels. Its assets consist of a fleet of Suezmax tankers, crude carriers and oil/bulk/ore carriers.
World Point Terminals Company Profile
World Point Terminals, LP owns, operates, develops and acquires liquid bulk storage terminals and other assets relating to the storage of petroleum products, including light refined products, heavy refined products and crude oil. The Company operates fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States. As of December 31, 2016, through its subsidiary, Center Point Terminal Company, LLC (Center Point), the Company owned and operated 15.6 million barrels of tankage at terminals, which are located in the East Coast, Gulf Coast and Midwest regions of the United States. The Company’s terminal facilities are located on waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with loading logistics. Its terminal facilities also have rail or pipeline access.
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