Ship Finance International (NYSE: SFL) and EQT Midstream Partners (NYSE:EQM) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
Ship Finance International has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, EQT Midstream Partners has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
This table compares Ship Finance International and EQT Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ship Finance International||28.66%||11.02%||4.01%|
|EQT Midstream Partners||65.99%||25.85%||16.59%|
Earnings and Valuation
This table compares Ship Finance International and EQT Midstream Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ship Finance International||$412.95 million||3.83||$146.40 million||$0.99||15.76|
|EQT Midstream Partners||$735.61 million||8.25||$537.95 million||$5.23||14.41|
EQT Midstream Partners has higher revenue and earnings than Ship Finance International. EQT Midstream Partners is trading at a lower price-to-earnings ratio than Ship Finance International, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Ship Finance International and EQT Midstream Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ship Finance International||0||1||1||0||2.50|
|EQT Midstream Partners||0||2||6||0||2.75|
Ship Finance International presently has a consensus price target of $15.00, suggesting a potential downside of 3.85%. EQT Midstream Partners has a consensus price target of $90.83, suggesting a potential upside of 20.55%. Given EQT Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe EQT Midstream Partners is more favorable than Ship Finance International.
Ship Finance International pays an annual dividend of $1.40 per share and has a dividend yield of 9.0%. EQT Midstream Partners pays an annual dividend of $3.92 per share and has a dividend yield of 5.2%. Ship Finance International pays out 141.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT Midstream Partners pays out 75.0% of its earnings in the form of a dividend. Ship Finance International has increased its dividend for 5 consecutive years and EQT Midstream Partners has increased its dividend for 4 consecutive years. Ship Finance International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
32.6% of Ship Finance International shares are owned by institutional investors. Comparatively, 73.7% of EQT Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
EQT Midstream Partners beats Ship Finance International on 12 of the 16 factors compared between the two stocks.
About Ship Finance International
Ship Finance International Limited is a holding, and international ship owning and chartering company. The Company is engaged in the ownership and operation of vessels and offshore related assets, and also involved in the charter, purchase and sale of assets. Its assets consist of approximately 20 oil tankers, over 20 dry bulk carriers, approximately 20 container vessels, including a newbuilding, two car carriers, two jack-up drilling rigs, two ultra-deepwater drilling units, five offshore supply vessels, two chemical tankers and two newbuilding oil product tankers. Its oil tankers, chemical tankers and oil product tankers are all double-hull vessels. It has over nine asset types, including crude oil tankers, oil product tankers, chemical tankers, container vessels, car carriers, dry bulk carriers, jack-up drilling rigs, ultra-deepwater drilling units and offshore supply vessels. Its assets consist of a fleet of Suezmax tankers, crude carriers and oil/bulk/ore carriers.
About EQT Midstream Partners
EQT Midstream Partners, LP (EQM) owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company’s segments include Gathering and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. Transmission includes EQM’s FERC-regulated interstate pipeline and storage business. The Company’s operations are primarily focused in southwestern Pennsylvania and northern West Virginia. As of December 31, 2016, the Company provided midstream services to EQT Corporation (EQT) and a range of third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two assets: the gathering system, which delivered natural gas from wells and other receipt points to transmission pipelines, and the transmission and storage system, which served as a header system transmission pipeline.
Receive News & Ratings for Ship Finance International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ship Finance International and related companies with MarketBeat.com's FREE daily email newsletter.