Teekay Offshore Partners (NYSE:TOO) and Brookfield Infrastructure Partners (NYSE:BIP) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.
Insider & Institutional Ownership
75.0% of Teekay Offshore Partners shares are held by institutional investors. Comparatively, 38.6% of Brookfield Infrastructure Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Teekay Offshore Partners and Brookfield Infrastructure Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teekay Offshore Partners||$1.42 billion||0.34||-$116.78 million||$0.29||4.00|
|Brookfield Infrastructure Partners||$4.65 billion||3.11||$329.00 million||$0.59||71.05|
Brookfield Infrastructure Partners has higher revenue and earnings than Teekay Offshore Partners. Teekay Offshore Partners is trading at a lower price-to-earnings ratio than Brookfield Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Teekay Offshore Partners has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500. Comparatively, Brookfield Infrastructure Partners has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Teekay Offshore Partners pays an annual dividend of $0.02 per share and has a dividend yield of 1.7%. Brookfield Infrastructure Partners pays an annual dividend of $2.01 per share and has a dividend yield of 4.8%. Teekay Offshore Partners pays out 6.9% of its earnings in the form of a dividend. Brookfield Infrastructure Partners pays out 340.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure Partners has raised its dividend for 9 consecutive years. Brookfield Infrastructure Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent recommendations and price targets for Teekay Offshore Partners and Brookfield Infrastructure Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Teekay Offshore Partners||1||1||0||0||1.50|
|Brookfield Infrastructure Partners||0||2||6||0||2.75|
Teekay Offshore Partners currently has a consensus price target of $1.00, suggesting a potential downside of 13.79%. Brookfield Infrastructure Partners has a consensus price target of $45.79, suggesting a potential upside of 9.22%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Brookfield Infrastructure Partners is more favorable than Teekay Offshore Partners.
This table compares Teekay Offshore Partners and Brookfield Infrastructure Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Teekay Offshore Partners||-10.04%||20.06%||3.16%|
|Brookfield Infrastructure Partners||4.24%||1.71%||0.65%|
Brookfield Infrastructure Partners beats Teekay Offshore Partners on 11 of the 16 factors compared between the two stocks.
About Teekay Offshore Partners
Teekay Offshore Partners L.P. provides marine transportation, oil production, storage, long-distance towing and offshore installation, and maintenance and safety services for the oil industry. It operates in six segments: Floating Production, Storage and Offloading (FPSO); Shuttle Tanker; Floating Storage and Off-Take (FSO); Unit for Maintenance and Safety (UMS); Towage and Offshore Installation Vessels; and Conventional Tanker. The company serves customers in offshore oil regions of the North Sea, Brazil, and the East Coast of Canada. As at December 31, 2018, it had a fleet of 35 shuttle tankers, 2 chartered-in vessels, 1 HiLoad dynamic positioning unit, 8 FPSO units, 6 FSO units, 10 long-distance towage and offshore installation vessels, 1 UMS, and 2 chartered-in conventional oil tankers. Teekay Offshore GP L.L.C. serves as the general partner of Teekay Offshore Partners L.P. The company was founded in 2006 and is based in Hamilton, Bermuda. Teekay Offshore Partners L.P. is a subsidiary of Brookfield TK TOLP L.P.
About Brookfield Infrastructure Partners
Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, energy, and data infrastructure businesses. The Utilities segment operates approximately 2,000 kilometers (km) of natural gas transportation pipelines in the states of Rio de Janeiro, Sao Paulo, and Minas Gerais; approximately 2,200 km of electricity transmission lines in North and South America; and approximately 6.6 million electricity and natural gas connections and 1.1 million smart meters, as well as operates metallurgical coal export terminals. The Transport segment offers transportation, storage, and handling services for freight, bulk commodities, and passengers through a network of 5,500 km of track network in south of Western Australia; approximately 4,800 km of rail in South America; approximately 4,200 km of motorways in Brazil, Chile, Peru, and India; and 37 port terminals in North America, the United Kingdom, Australia, and Europe. The Energy segment offers natural gas midstream and storage services through approximately 15,000 km of natural gas transmission pipelines; and 600 billion cubic feet of natural gas storage in the United States and Canada. This segment also provides heating and cooling services to customers, and energy solutions, as well as serves approximately 24,900 natural gas, water, and wastewater connections. In addition, the Energy segment provides water heater rental; heating, ventilation, and air conditioner rental; and other home services in Canada and the United States, as well as 270,000 contracted sub-metering services with in Canada. The Data Infrastructure segment offers services and critical infrastructure to the media broadcasting and telecom sectors; and data storage services and infrastructure to enterprise customers. The company was founded in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. is a subsidiary of Brookfield Asset Management Inc.
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