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 $292.7M against $135.1M — 2.2× the size. Toro Corp. has negative trailing earnings, so its P/E is not meaningful; KNOT Offshore Partners LP trades at 21.2×. Toro Corp. grew revenue faster over the last twelve months: 21.1% against 12.9%. KNOT Offshore Partners LP has the higher net margin (3.46% vs −2.31%) and the higher return on invested capital (3.03% vs −2.50%). Only KNOT Offshore Partners LP pays a dividend (2.96%). Across the 19 metrics below, KNOT Offshore Partners LP leads on 14 and Toro Corp. on 5.

Valuation

Metric KNOP TORO Oil & Gas Midstream median
P/E 21.21 n/m 11.68
P/S 0.77 4.41 2.39
P/B 0.55 0.57 1.68
Price to free cash flow 1.91 n/m 8.52
EV/EBITDA 5.30 29.32 9.03
EV/Sales 2.88 1.40 3.43
Earnings yield 4.71% (2.77%) 7.78%
Free cash flow yield 52.42% (19.85%) 7.11%

Profitability

Metric KNOP TORO Oil & Gas Midstream median
Gross margin 63.67% 54.87% 54.87%
Operating margin 18.13% (18.23%) 34.73%
Net margin 3.46% (2.31%) 20.12%
Free cash flow margin 40.24% 30.37% 14.43%
Return on equity 2.46% (0.29%) 11.73%
Return on assets 0.81% (0.17%) 4.43%
Return on invested capital 3.03% (2.50%) 6.10%

Growth

Metric KNOP TORO Oil & Gas Midstream median
Revenue growth (TTM) 12.85% 21.12% 14.88%
EPS growth (last fiscal year) 128.57% (92.66%) (7.78%)
Revenue growth, 5-year CAGR 5.47% — 10.05%
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 0.77
Current ratio 0.34 20.86 1.19
Net debt to EBITDA 4.37 (305.33) 3.46

Dividend

Metric KNOP TORO Oil & Gas Midstream median
Dividend yield 2.96% 0.00% 4.94%
Payout ratio 0.63 0.00 0.73

Size

Metric KNOP TORO Oil & Gas Midstream median
Market cap 292.66m 135.13m 3.56b

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