Golar LNG (NASDAQ: GLNG) and Hess Midstream Partners (NYSE:HESM) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Golar LNG pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Hess Midstream Partners pays an annual dividend of $1.24 per share and has a dividend yield of 5.8%. Golar LNG pays out -10.3% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Golar LNG and Hess Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Golar LNG||$80.26 million||37.41||-$186.53 million||($1.95)||-15.25|
|Hess Midstream Partners||$509.80 million||1.14||$206.30 million||N/A||N/A|
Hess Midstream Partners has higher revenue and earnings than Golar LNG.
Institutional and Insider Ownership
82.8% of Golar LNG shares are held by institutional investors. Comparatively, 57.2% of Hess Midstream Partners shares are held by institutional investors. 0.0% of Golar LNG shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Golar LNG and Hess Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hess Midstream Partners||28.19%||6.64%||6.15%|
This is a breakdown of recent recommendations for Golar LNG and Hess Midstream Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hess Midstream Partners||0||0||6||0||3.00|
Golar LNG currently has a consensus target price of $35.17, indicating a potential upside of 18.29%. Hess Midstream Partners has a consensus target price of $28.33, indicating a potential upside of 32.71%. Given Hess Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Hess Midstream Partners is more favorable than Golar LNG.
Hess Midstream Partners beats Golar LNG on 8 of the 13 factors compared between the two stocks.
About Golar LNG
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.
About Hess Midstream Partners
Hess Midstream Partners LP is a fee-based, traditional master limited partnership formed to own, operate, develop and acquire a set of midstream assets to provide services to Hess and third-party crude oil and natural gas producers. The Company’s assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota (collectively referred as the Bakken). It operates its business through three segments: gathering; processing and storage; and terminaling and export. The Company’s gathering business consisted of its 20% controlling economic interest in Gathering Opco, which owns North Dakota natural gas, natural gas liquids and crude oil gathering systems. The Company’s processing and storage business consisted of its 20% controlling economic interest in the Tioga Gas Plant and its 100% interest in the Mentor Storage Terminal. The Company’s terminaling and export business consisted of its 20% controlling economic interest in Logistics Opco.
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