Icahn Enterprises (NASDAQ:IEP) versus Dynagas LNG Partners (NYSE:DLNG) Critical Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynagas LNG Partners	42.33%	13.05%	6.74%
Icahn Enterprises	-9.25%	-20.22%	-3.71%

Insider & Institutional Ownership

87.1% of Icahn Enterprises shares are owned by institutional investors. 90.1% of Icahn Enterprises shares are owned by insiders. 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.

Analyst Ratings

This is a summary of recent ratings for Dynagas LNG Partners and Icahn Enterprises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynagas LNG Partners	0	1	0	0	2.00
Icahn Enterprises	1	0	0	0	1.00

Risk and Volatility

Dynagas LNG Partners has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Icahn Enterprises has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Dividends

Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 6.3%. Icahn Enterprises pays an annual dividend of $2.00 per share and has a dividend yield of 42.9%. Dynagas LNG Partners pays out 11.9% of its earnings in the form of a dividend. Icahn Enterprises pays out -129.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Icahn Enterprises is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Dynagas LNG Partners and Icahn Enterprises”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynagas LNG Partners	$156.62 million	0.74	$61.60 million	$1.68	1.89
Icahn Enterprises	$9.66 billion	0.37	-$299.00 million	($1.54)	-3.03

Dynagas LNG Partners has higher earnings, but lower revenue than Icahn Enterprises. Icahn Enterprises 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 Icahn Enterprises on 8 of the 14 factors compared between the two stocks.

About Dynagas LNG Partners

Dynagas LNG Partners LP is an international owner and operator of liquefied natural gas (LNG) carriers. Its vessels transport LNG by sea, supporting the movement of natural gas from production and export facilities to receiving markets. The partnership was formed in 2013 and is sponsored by Dynagas Ltd., a private LNG shipping company founded by Greek shipowner George Prokopiou. Dynagas LNG Partners’ vessels serve customers in international energy markets, generally through long-term charter arrangements.

About Icahn Enterprises

Icahn Enterprises L.P. is a diversified holding company that invests in and operates businesses across several industries. Its activities include energy, automotive services, food packaging, real estate and home fashion, alongside its investment operations. The company conducts much of its business through subsidiaries and other controlled entities, including operations serving customers in the United States and international markets. Its roots date to 1987, when it was formed as American Real Estate Partners; it adopted the Icahn Enterprises name in 2007.