Reviewing EuroDry (NASDAQ:EDRY) and Teekay Lng Partners (NASDAQ:TGP)

Teekay Lng Partners (NYSE:TGP) and EuroDry (NASDAQ:EDRY) are both small-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Earnings & Valuation

This table compares Teekay Lng Partners and EuroDry’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teekay Lng Partners $510.76 million 2.08 $28.37 million $0.76 17.54
EuroDry $24.52 million 0.67 $1.12 million $0.24 29.92

Teekay Lng Partners has higher revenue and earnings than EuroDry. Teekay Lng Partners is trading at a lower price-to-earnings ratio than EuroDry, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Teekay Lng Partners and EuroDry, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay Lng Partners 0 2 3 0 2.60
EuroDry 0 0 2 0 3.00

Teekay Lng Partners presently has a consensus price target of $17.00, suggesting a potential upside of 27.53%. EuroDry has a consensus price target of $12.25, suggesting a potential upside of 70.61%. Given EuroDry’s stronger consensus rating and higher possible upside, analysts plainly believe EuroDry is more favorable than Teekay Lng Partners.

Dividends

Teekay Lng Partners pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. EuroDry does not pay a dividend. Teekay Lng Partners pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Teekay Lng Partners and EuroDry’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay Lng Partners 10.92% 5.75% 1.73%
EuroDry 12.94% 5.86% 2.08%

Insider & Institutional Ownership

28.8% of Teekay Lng Partners shares are held by institutional investors. Comparatively, 0.0% of EuroDry shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About Teekay Lng Partners

Teekay LNG Partners L.P. provides marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude oil worldwide. The company operates through three segments: The Liquefied Natural Gas, The Liquefied Petroleum Gas, and The Conventional Tanker. It transports liquid petroleum gases, including propane, butane, and ethane; petrochemical gases, such as ethylene, propylene, and butadiene; and ammonia. As of April 24, 2019, it had a fleet of 49 LNG carriers, 22 LPG, 7 multi-gas carriers, and 1 conventional tankers. Teekay GP L.L.C. serves as the general partner of the company. Teekay LNG Partners L.P. was founded in 2004 and is based in Hamilton, Bermuda.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. The company owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks comprising bauxite, phosphate, and fertilizers. As of November 15, 2018, it operated a fleet of six vessels, including one Ultramax, two Kamsarmax, and three Panamax drybulk carriers with a cargo capacity of 453,086 deadweight tons. The company was founded in 2018 and is based in Maroussi, Greece.

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