Analyzing Golar LNG Partners (GMLP) & Dynagas LNG Partners (DLNG)

Golar LNG Partners (NASDAQ: GMLP) and Dynagas LNG Partners (NYSE:DLNG) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

45.5% of Golar LNG Partners shares are owned by institutional investors. Comparatively, 19.6% of Dynagas LNG Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Golar LNG Partners has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Dynagas LNG Partners has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Golar LNG Partners and Dynagas LNG Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golar LNG Partners 0 3 1 0 2.25
Dynagas LNG Partners 0 2 3 0 2.60

Golar LNG Partners currently has a consensus price target of $23.25, indicating a potential upside of 1.66%. Dynagas LNG Partners has a consensus price target of $17.20, indicating a potential upside of 22.16%. Given Dynagas LNG Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Dynagas LNG Partners is more favorable than Golar LNG Partners.

Profitability

This table compares Golar LNG Partners and Dynagas LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golar LNG Partners 43.94% 31.69% 9.02%
Dynagas LNG Partners 26.03% 19.22% 5.02%

Dividends

Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 10.1%. Dynagas LNG Partners pays an annual dividend of $1.69 per share and has a dividend yield of 12.0%. 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. Dynagas LNG Partners pays out 176.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Golar LNG Partners and Dynagas LNG Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Golar LNG Partners $466.14 million 3.21 $388.08 million $2.81 8.14
Dynagas LNG Partners $155.54 million 3.22 $111.30 million $0.96 14.67

Golar LNG Partners has higher revenue and earnings than Dynagas LNG Partners. Golar LNG Partners is trading at a lower price-to-earnings ratio than Dynagas LNG Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Golar LNG Partners beats Dynagas LNG Partners on 8 of the 15 factors compared between the two stocks.

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.

Dynagas LNG Partners Company Profile

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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