KNOT Offshore Partners LP (KNOP) vs Toro Corp. (TORO)

KNOT Offshore Partners LP and Toro Corp. are both Oil & Gas Midstream companies. KNOT Offshore Partners LP is the larger, with a market value of $337.6M against $146.0M — 2.3× the size. Toro Corp. has negative trailing earnings, so its P/E is not meaningful; KNOT Offshore Partners LP trades at 22.5×. Toro Corp. grew revenue faster over the last twelve months: 21.1% against 12.9%. KNOT Offshore Partners LP has the higher net margin (2.04% vs −2.31%) and the higher return on invested capital (3.03% vs −2.50%). Only KNOT Offshore Partners LP pays a dividend (2.80%). Across the 19 metrics below, KNOT Offshore Partners LP leads on 13 and Toro Corp. on 6.

Valuation

Metric KNOP TORO Oil & Gas Midstream median
P/E 22.50 n/m 12.77
P/S 0.90 4.64 2.36
P/B 0.64 0.60 2.09
Price to free cash flow 2.22 n/m 9.71
EV/EBITDA 5.53 34.02 8.30
EV/Sales 3.01 1.62 3.88
Earnings yield 4.44% (2.63%) 7.15%
Free cash flow yield 44.95% (18.89%) 6.86%

Profitability

Metric KNOP TORO Oil & Gas Midstream median
Gross margin 63.67% 54.87% 56.58%
Operating margin 18.13% (18.23%) 34.18%
Net margin 2.04% (2.31%) 22.50%
Free cash flow margin 40.24% 30.37% 13.70%
Return on equity 1.46% (0.29%) 14.65%
Return on assets 0.48% (0.17%) 5.00%
Return on invested capital 3.03% (2.50%) 6.13%

Growth

Metric KNOP TORO Oil & Gas Midstream median
Revenue growth (TTM) 12.85% 21.12% 15.60%
EPS growth (last fiscal year) 68.29% (92.66%) (7.86%)
Revenue growth, 5-year CAGR 5.47% — 9.59%
Net income growth, 5-year CAGR (22.27%) — 0.00%

Health

Metric KNOP TORO Oil & Gas Midstream median
Debt to equity 1.45 0.00 0.78
Current ratio 0.34 20.86 1.19
Net debt to EBITDA 4.37 (305.33) 3.42

Dividend

Metric KNOP TORO Oil & Gas Midstream median
Dividend yield 2.80% 0.00% 4.54%
Payout ratio 0.63 0.00 0.76

Size

Metric KNOP TORO Oil & Gas Midstream median
Market cap 337.59m 146.01m 3.73b

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