Critical Comparison: Nordic American Tanker (NAT) and Golar LNG Partners (GMLP)
Nordic American Tanker (NYSE: NAT) and Golar LNG Partners (NASDAQ:GMLP) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
This is a summary of recent recommendations for Nordic American Tanker and Golar LNG Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nordic American Tanker||2||4||1||0||1.86|
|Golar LNG Partners||0||2||4||0||2.67|
This table compares Nordic American Tanker and Golar LNG Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nordic American Tanker||-48.82%||-9.01%||-5.72%|
|Golar LNG Partners||29.85%||17.19%||5.43%|
Valuation & Earnings
This table compares Nordic American Tanker and Golar LNG Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nordic American Tanker||$154.68 million||1.94||-$75.50 million||($0.71)||-2.97|
|Golar LNG Partners||$433.10 million||3.12||$129.28 million||$1.88||10.29|
Golar LNG Partners has higher revenue and earnings than Nordic American Tanker. Nordic American Tanker is trading at a lower price-to-earnings ratio than Golar LNG Partners, indicating that it is currently the more affordable of the two stocks.
Nordic American Tanker pays an annual dividend of $0.12 per share and has a dividend yield of 5.7%. Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 11.9%. Nordic American Tanker pays out -16.9% of its earnings in the form of a dividend. Golar LNG Partners pays out 122.9% 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 and Insider Ownership
28.7% of Nordic American Tanker shares are held by institutional investors. Comparatively, 44.0% of Golar LNG Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Nordic American Tanker has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Golar LNG Partners has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.
Golar LNG Partners beats Nordic American Tanker on 12 of the 14 factors compared between the two stocks.
Nordic American Tanker Company Profile
Nordic American Tankers Limited, a tanker company, engages in acquiring and chartering double-hull tankers worldwide. It operates a fleet of 33 Suezmax crude oil tankers. The company was founded in 1995 and is based in Hamilton, Bermuda.
Golar LNG Partners Company Profile
Golar LNG Partners LP engages in the logistics solutions. Its activities include owning, trading, and operation of floating storage and regasification units (FSRU) and liquefied natural gas ( LNG) marine transportation. The company was founded on September 24, 2007 and is headquartered in Hamilton, Bermuda.
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