Comparing Golar LNG Partners (GMLP) & Golar LNG Limited (GLNG)

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

Profitability

This table compares Golar LNG Partners and Golar LNG Limited’s 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%
Golar LNG Limited -179.35% -7.78% -3.28%

Dividends

Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 10.5%. Golar LNG Limited pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. 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.

Earnings & Valuation

This table compares Golar LNG Partners and Golar LNG Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Golar LNG Partners $466.14 million 3.32 $388.08 million $2.81 7.80
Golar LNG Limited $98.85 million 21.27 -$49.98 million N/A N/A

Golar LNG Partners has higher revenue and earnings than Golar LNG Limited.

Risk and Volatility

Golar LNG Partners has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Golar LNG Limited has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

74.0% of Golar LNG Partners shares are owned by institutional investors. Comparatively, 87.5% of Golar LNG Limited shares are owned by institutional investors. 0.0% of Golar LNG Limited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Golar LNG Partners and Golar LNG Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golar LNG Partners 0 3 1 0 2.25
Golar LNG Limited 0 2 8 0 2.80

Golar LNG Partners currently has a consensus target price of $23.25, indicating a potential upside of 6.07%. Golar LNG Limited has a consensus target price of $34.67, indicating a potential upside of 61.62%. Given Golar LNG Limited’s stronger consensus rating and higher probable upside, analysts clearly believe Golar LNG Limited is more favorable than Golar LNG Partners.

About Golar LNG Partners

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.

About Golar LNG Limited

Golar LNG Limited is a midstream liquefied natural gas (LNG) company engaged primarily in the transportation, regasification, liquefaction and trading of LNG. The Company is engaged in the acquisition, ownership, operation and chartering of LNG carriers and Floating Storage Regasification Unit (FSRUs) through its subsidiaries and affiliates, and the development of LNG projects, such as floating LNGs (FLNGs). The Company’s segments include Vessel operations, LNG trading and FLNG. Under the Vessel operations segment, the Company operates and charters out LNG carriers and FSRUs on fixed terms to customers. Through the LNG trading segment, the Company provides physical and financial risk management in LNG and gas markets for customers around the world. The FLNG segment includes the costs associated with the conversion of its LNG carrier, the Hilli, to a FLNG. The Company, along with its affiliate, Golar LNG Partners LP, has a combined fleet of approximately 30 vessels.

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