Analyzing VOC Energy Trust (NYSE:VOC) & BW LPG (NYSE:BWLP)

VOC Energy Trust (NYSE:VOC) and BW LPG (NYSE:BWLP) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for VOC Energy Trust and BW LPG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VOC Energy Trust	1	0	0	0	1.00
BW LPG	0	1	4	0	2.80

Valuation and Earnings

This table compares VOC Energy Trust and BW LPG”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VOC Energy Trust	$7.52 million	6.72	$7.39 million	$0.41	7.26
BW LPG	$3.53 billion	0.94	$242.31 million	$2.94	7.41

BW LPG has higher revenue and earnings than VOC Energy Trust. VOC Energy Trust is trading at a lower price-to-earnings ratio than BW LPG, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

VOC Energy Trust has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, BW LPG has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Dividends

VOC Energy Trust pays an annual dividend of $0.76 per share and has a dividend yield of 25.5%. BW LPG pays an annual dividend of $3.80 per share and has a dividend yield of 17.4%. VOC Energy Trust pays out 185.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BW LPG pays out 129.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares VOC Energy Trust and BW LPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VOC Energy Trust	91.51%	68.92%	68.92%
BW LPG	12.64%	22.48%	13.50%

Summary

BW LPG beats VOC Energy Trust on 8 of the 13 factors compared between the two stocks.

About VOC Energy Trust

VOC Energy Trust is a publicly traded grantor trust formed to own and distribute proceeds from oil and natural gas interests. The trust does not operate exploration and production activities directly; instead, it receives income from its underlying interests in producing and potentially developing oil and gas properties. The trust’s assets primarily consist of net profits interests in oil and natural gas properties located in Kansas and Texas. Revenue is generated from the sale of production from these properties, after the deduction of applicable operating expenses, development costs and other expenses.

About BW LPG

BW LPG Limited is a Singapore-based owner and operator of liquefied petroleum gas (LPG) carriers. The company transports LPG by sea, connecting producers with customers and markets around the world. Its fleet includes very large gas carriers and other LPG vessels designed to carry large volumes of gas. BW LPG also provides LPG distribution services in India, extending its business beyond maritime transportation into the downstream supply chain.