Navigator Holdings (NYSE: NVGS) and Dynagas LNG Partners (NYSE:DLNG) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitabiliy and dividends.
Dynagas LNG Partners pays an annual dividend of $1.69 per share and has a dividend yield of 11.2%. Navigator Holdings does not pay a dividend. Dynagas LNG Partners pays out 107.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
68.5% of Navigator Holdings shares are owned by institutional investors. Comparatively, 21.8% of Dynagas LNG Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Navigator Holdings and Dynagas LNG Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Navigator Holdings||$295.06 million||1.91||$123.49 million||$0.51||19.90|
|Dynagas LNG Partners||$166.20 million||3.23||$128.29 million||$1.58||9.57|
Dynagas LNG Partners has higher revenue, but lower earnings than Navigator Holdings. Dynagas LNG Partners is trading at a lower price-to-earnings ratio than Navigator Holdings, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Navigator Holdings has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Dynagas LNG Partners has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
This table compares Navigator Holdings and Dynagas LNG Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dynagas LNG Partners||37.68%||23.74%||6.28%|
This is a breakdown of recent ratings and price targets for Navigator Holdings and Dynagas LNG Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynagas LNG Partners||0||3||3||0||2.50|
Navigator Holdings currently has a consensus price target of $14.50, suggesting a potential upside of 42.86%. Dynagas LNG Partners has a consensus price target of $16.25, suggesting a potential upside of 7.47%. Given Navigator Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Navigator Holdings is more favorable than Dynagas LNG Partners.
Dynagas LNG Partners beats Navigator Holdings on 8 of the 15 factors compared between the two stocks.
About Navigator Holdings
Navigator Holdings Ltd. is an owner and operator of a fleet of handysize liquefied gas carriers. The Company provides international and regional seaborne transportation services of liquefied petroleum gas (LPG), petrochemical gases and ammonia. As of December 31, 2016, it had 33 semi- or fully-refrigerated handysize liquefied gas carriers. Its handysize liquefied gas carriers are liquefied gas carriers with capabilities between 15,000 and 24,999 cubic meter (cbm). Its handysize liquefied gas carriers can accommodate medium- and long-haul routes. In addition, it had four midsize 37,300 cbm ethylene-capable semi-refrigerated liquefied gas carriers as of December 31, 2016. Its midsize ethylene-capable semi-refrigerated gas carriers enable long-haul transportation of ethane/ethylene. As of December 31, 2016, it also had one 38,000 cbm fully refrigerated gas carrier. The Company carries LPG for international energy companies, state-owned utilities and commodities traders.
About Dynagas LNG Partners
Dynagas LNG Partners LP is a limited partnership, which focuses on owning and operating liquid natural gas (LNG) carriers. The Company’s vessels are employed on multi-year time charters with international energy companies. As of December 31, 2016, the Company owned and operated a fleet of six LNG carriers, consisting of the three LNG carriers in its Initial Fleet, the Clean Energy, the Ob River and the Amur River, and three 2013-built Ice Class LNG carriers that the Company acquired from its Sponsor the Arctic Aurora, the Yenisei River, and the Lena River (collectively referred as its Fleet). The vessels in its Fleet have an average age of 6.6 years and are contracted under multi-year charters with Shell, Gazprom, Statoil and Yamal with an average remaining charter term, as of March 17, 2017, of approximately 10.6 years, including the charter agreements relating to the Yenisei River and the Lena River with Yamal. The Company’s Fleet is managed by its manager, Dynagas Ltd.
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