Contrasting Golar LNG Partners (GMLP) & Costamare (CMRE)

Costamare (NYSE: CMRE) and Golar LNG Partners (NASDAQ:GMLP) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitabiliy, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Costamare and Golar LNG Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Costamare 0 4 3 0 2.43
Golar LNG Partners 0 3 1 0 2.25

Costamare presently has a consensus target price of $8.50, indicating a potential upside of 26.68%. Golar LNG Partners has a consensus target price of $23.25, indicating a potential upside of 16.25%. Given Costamare’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Costamare is more favorable than Golar LNG Partners.

Profitability

This table compares Costamare and Golar LNG Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Costamare 15.38% 10.50% 4.27%
Golar LNG Partners 40.50% 30.57% 7.84%

Insider & Institutional Ownership

18.6% of Costamare shares are held by institutional investors. Comparatively, 77.4% of Golar LNG Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Costamare pays an annual dividend of $0.40 per share and has a dividend yield of 6.0%. Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 11.6%. Costamare pays out 64.5% of its earnings in the form of a dividend. 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 and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Costamare $453.44 million 1.36 $295.35 million $0.62 10.82
Golar LNG Partners $441.92 million 3.20 $366.28 million $2.81 7.12

Golar LNG Partners has higher revenue, but lower earnings than Costamare. Golar LNG Partners is trading at a lower price-to-earnings ratio than Costamare, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Costamare has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500. Comparatively, Golar LNG Partners has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Summary

Golar LNG Partners beats Costamare on 9 of the 15 factors compared between the two stocks.

About Costamare

Costamare Inc. (Costamare) is a holding company. The Company is an international owner of containerships. The Company is engaged in chartering its vessels to various liner companies. The Company provides marine transportation services around the world by chartering its container vessels to liner operators under long, medium and short-term time charters. As of March 10, 2017, the Company had a fleet of 69 containerships with a total capacity of approximately 456,000 TEU, including five newbuilds on order. The Company’s fleet of vessels includes Cosco Guangzhou, Titan, Cosco Yantian, Valor, Valiant and Maersk Kobe. Its subsidiaries include Adele Shipping Co., Bastian Shipping Co., Cadence Shipping Co., Jodie Shipping Co. and Kayley Shipping Co.

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.

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