Analyzing Hornbeck Offshore Services (HOS) & Dynagas LNG Partners (DLNG)

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

Analyst Ratings

This is a summary of recent recommendations for Hornbeck Offshore Services and Dynagas LNG Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hornbeck Offshore Services 1 0 1 0 2.00
Dynagas LNG Partners 1 4 3 0 2.25

Hornbeck Offshore Services currently has a consensus price target of $2.00, suggesting a potential downside of 25.37%. Dynagas LNG Partners has a consensus price target of $10.46, suggesting a potential upside of 151.55%. Given Dynagas LNG Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Dynagas LNG Partners is more favorable than Hornbeck Offshore Services.

Institutional & Insider Ownership

62.5% of Hornbeck Offshore Services shares are held by institutional investors. Comparatively, 10.2% of Dynagas LNG Partners shares are held by institutional investors. 8.4% of Hornbeck Offshore Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Hornbeck Offshore Services has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Dynagas LNG Partners has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Hornbeck Offshore Services -0.54% -7.90% -4.03%
Dynagas LNG Partners 7.78% 9.15% 2.01%

Dividends

Dynagas LNG Partners pays an annual dividend of $1.00 per share and has a dividend yield of 24.0%. Hornbeck Offshore Services does not pay a dividend. Dynagas LNG Partners pays out 135.1% 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 Hornbeck Offshore Services and Dynagas LNG Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hornbeck Offshore Services $191.41 million 0.53 $27.42 million ($2.49) -1.08
Dynagas LNG Partners $138.99 million 1.06 $16.05 million $0.74 5.62

Hornbeck Offshore Services has higher revenue and earnings than Dynagas LNG Partners. Hornbeck Offshore Services 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

Dynagas LNG Partners beats Hornbeck Offshore Services on 10 of the 16 factors compared between the two stocks.

Hornbeck Offshore Services Company Profile

Hornbeck Offshore Services, Inc., together with its subsidiaries, provides marine transportation, subsea installation, and accommodation support services to exploration and production, oilfield service, offshore construction, and the U.S. military customers. It operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-based facility to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the U.S. Gulf of Mexico, Latin America, and internationally. Its fleet of U.S.-flagged OSVs and MPSVs support deep-well, deepwater, and ultra-deepwater activities of the offshore oil and gas industry, such as oil and gas exploration, field development, production, construction, installation, well-stimulation, and other enhanced oil recovery, as well as inspection, repair, and maintenance services. The company also provides vessel management services, including crewing, daily operational management, and maintenance activities for other vessels owners. As of December 31, 2017, it owned and operated 62 OSVs and 8 MPSVs. Hornbeck Offshore Services, Inc. was founded in 1997 and is headquartered in Covington, Louisiana.

Dynagas LNG Partners Company Profile

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry worldwide. The company owns and operates liquefied natural gas (LNG) carriers. As of March 9, 2018, its fleet consisted of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was founded in 2013 and is headquartered in Monaco.

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