Dorian LPG (NYSE: LPG) and KNOT Offshore Partners (NYSE:KNOP) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Profitability
This table compares Dorian LPG and KNOT Offshore Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dorian LPG | -4.33% | -4.16% | -2.31% |
| KNOT Offshore Partners | 35.75% | 10.26% | 4.31% |
Volatility & Risk
Dorian LPG has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, KNOT Offshore Partners has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Dorian LPG and KNOT Offshore Partners, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dorian LPG | 0 | 0 | 1 | 0 | 3.00 |
| KNOT Offshore Partners | 0 | 0 | 0 | 0 | N/A |
Dorian LPG presently has a consensus price target of $10.00, indicating a potential upside of 46.63%. Given Dorian LPG’s higher possible upside, analysts clearly believe Dorian LPG is more favorable than KNOT Offshore Partners.
Valuation & Earnings
This table compares Dorian LPG and KNOT Offshore Partners’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Dorian LPG | $157.40 million | 2.39 | $66.09 million | ($0.12) | -56.83 |
| KNOT Offshore Partners | $184.55 million | 3.77 | $140.66 million | $2.39 | 9.79 |
KNOT Offshore Partners has higher revenue and earnings than Dorian LPG. Dorian LPG 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.
Insider & Institutional Ownership
48.4% of Dorian LPG shares are owned by institutional investors. Comparatively, 51.4% of KNOT Offshore Partners shares are owned by institutional investors. 26.5% of Dorian LPG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dividends
KNOT Offshore Partners pays an annual dividend of $2.08 per share and has a dividend yield of 8.9%. Dorian LPG does not pay a dividend. KNOT Offshore Partners pays out 87.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dorian LPG has increased its dividend for 3 consecutive years.
Summary
KNOT Offshore Partners beats Dorian LPG on 9 of the 15 factors compared between the two stocks.
Dorian LPG Company Profile
Dorian LPG Ltd. is a holding company. The Company, through its subsidiaries, is focused on owning and operating very large gas carrier (VLGCs) in the liquefied petroleum gas (LPG) shipping industry. The Company is engaged in the transportation of LPG across the world through its ownership and operation of LPG tankers. As of March 31, 2016, the Company owned and operated a fleet of 22 VLGCs, including 19 84,000 cubic meter (cbm) ECO-design VLGCs (ECO VLGCs) and three 82,000 cbm VLGCs. The VLGCs in its fleet had an aggregate carrying capacity of approximately 1.8 million cbm at May 26, 2016. It provides in-house commercial and technical management services for all of its vessels. As of May 26, 2016, its VLGCs included Captain Nicholas ML; Captain John NP; Comet; Corsair; Corvette; Cougar; Concorde; Cobra; Continental; Commodore; Constellation; Cheyenne; Cratis; Chaparral; Commander, and Challenger. The Company’s customers include global energy companies, commodity traders and importers.
KNOT Offshore Partners Company Profile
KNOT Offshore Partners LP (KNOT Offshore Partners or the Partnership), owns, operates and acquires shuttle tankers under long-term charters. The Partnership’s vessels in its fleet are chartered to Statoil ASA (Statoil), Petrobras Transporte S.A. (Transpetro), Repsol Sinopec Brasil, S.A. (Repsol), Royal Dutch Shell plc, ExxonMobil, and Eni Trading and Shipping S.p.A. (ENI). As of March 17, 2017, the Company had a fleet of 12 shuttle tankers. Its shuttle tankers include Fortaleza Knutsen, Recife Knutsen, Bodil Knutsen and Dan Cisne. KNOT Offshore Partners GP LLC is the general partner of the Partnership. It is engaged in the loading, transportation and storage of the crude oil using the vessels in its fleet. It provides all of these services under time charters and bareboat charters. As of December 31, 2016, eight of its shuttle tankers were chartered under time charters and four of its shuttle tankers were chartered under bareboat charters.
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