Golar LNG Limited (NASDAQ: GLNG) and Golar LNG Partners (NASDAQ:GMLP) are both transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
This is a summary of current recommendations for Golar LNG Limited and Golar LNG Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golar LNG Limited||0||1||7||0||2.88|
|Golar LNG Partners||0||3||1||0||2.25|
Golar LNG Limited currently has a consensus target price of $34.67, indicating a potential upside of 54.14%. Golar LNG Partners has a consensus target price of $23.25, indicating a potential upside of 1.04%. Given Golar LNG Limited’s stronger consensus rating and higher possible upside, equities analysts clearly believe Golar LNG Limited is more favorable than Golar LNG Partners.
Golar LNG Limited pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 10.0%. Golar LNG Partners pays out 82.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Golar LNG Limited and Golar LNG Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golar LNG Limited||$98.85 million||22.30||-$49.98 million||N/A||N/A|
|Golar LNG Partners||$466.14 million||3.23||$388.08 million||$2.81||8.19|
Golar LNG Partners has higher revenue and earnings than Golar LNG Limited.
Risk and Volatility
Golar LNG Limited has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Golar LNG Partners has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.
This table compares Golar LNG Limited and Golar LNG Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golar LNG Limited||-179.35%||-7.78%||-3.28%|
|Golar LNG Partners||43.94%||31.69%||9.02%|
Institutional & Insider Ownership
87.9% of Golar LNG Limited shares are owned by institutional investors. Comparatively, 45.5% of Golar LNG Partners shares are owned by institutional investors. 0.0% of Golar LNG Limited shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Golar LNG Limited Company Profile
Golar LNG Limited is a midstream liquefied natural gas (LNG) company engaged primarily in the transportation, regasification, liquefaction and trading of LNG. The Company is engaged in the acquisition, ownership, operation and chartering of LNG carriers and Floating Storage Regasification Unit (FSRUs) through its subsidiaries and affiliates, and the development of LNG projects, such as floating LNGs (FLNGs). The Company’s segments include Vessel operations, LNG trading and FLNG. Under the Vessel operations segment, the Company operates and charters out LNG carriers and FSRUs on fixed terms to customers. Through the LNG trading segment, the Company provides physical and financial risk management in LNG and gas markets for customers around the world. The FLNG segment includes the costs associated with the conversion of its LNG carrier, the Hilli, to a FLNG. The Company, along with its affiliate, Golar LNG Partners LP, has a combined fleet of approximately 30 vessels.
Golar LNG Partners Company Profile
Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term time charters. The Company operates through the LNG market segment. The Company’s fleet consists of approximately six FSRUs and over four LNG carriers. The Company’s FSRU vessels include Golar Spirit, Golar Winter, Golar Freeze, NR Satu, Golar Igloo and Golar Eskimo. Its FSRU vessels have a total capacity of approximately 846,000 cubic meters. The Company’s LNG carriers include Golar Mazo, Methane Princess, Golar Grand and Golar Maria. Its LNG carriers have a total capacity of over 564,400 cubic meters.
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