Höegh LNG Partners (NYSE:HMLP) and KNOT Offshore Partners (NYSE:KNOP) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares Höegh LNG Partners and KNOT Offshore Partners' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Höegh LNG Partners | $145.44 million | 3.52 | $52.74 million | $2.09 | 7.36 |
| KNOT Offshore Partners | $282.56 million | 2.12 | $58 million | $1.80 | 10.18 |
KNOT Offshore Partners has higher revenue and earnings than Höegh LNG Partners. Höegh LNG Partners is trading at a lower price-to-earnings ratio than KNOT Offshore Partners, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Höegh LNG Partners and KNOT Offshore Partners' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Höegh LNG Partners | 43.54% | 20.74% | 6.70% |
| KNOT Offshore Partners | 23.04% | 10.64% | 3.77% |
Risk & Volatility
Höegh LNG Partners has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, KNOT Offshore Partners has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
Dividends
Höegh LNG Partners pays an annual dividend of $1.76 per share and has a dividend yield of 11.4%. KNOT Offshore Partners pays an annual dividend of $2.08 per share and has a dividend yield of 11.3%. Höegh LNG Partners pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KNOT Offshore Partners pays out 115.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Höegh LNG Partners has increased its dividend for 1 consecutive years and KNOT Offshore Partners has increased its dividend for 1 consecutive years. Höegh LNG Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings for Höegh LNG Partners and KNOT Offshore Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Höegh LNG Partners | 1 | 2 | 2 | 0 | 2.20 |
| KNOT Offshore Partners | 1 | 0 | 1 | 0 | 2.00 |
Höegh LNG Partners currently has a consensus target price of $14.00, indicating a potential downside of 9.03%. KNOT Offshore Partners has a consensus target price of $19.50, indicating a potential upside of 6.38%. Given KNOT Offshore Partners' higher possible upside, analysts plainly believe KNOT Offshore Partners is more favorable than Höegh LNG Partners.
Insider and Institutional Ownership
21.3% of Höegh LNG Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Höegh LNG Partners beats KNOT Offshore Partners on 12 of the 15 factors compared between the two stocks.
