Dorian LPG Ltd. (LPG) vs Teekay Tankers Ltd. (TNK)

Dorian LPG Ltd. and Teekay Tankers Ltd. are both Oil & Gas Midstream companies. Teekay Tankers Ltd. is the larger, with a market value of $3.4B against $2.3B — 1.5× the size. Teekay Tankers Ltd. trades at the lower P/E: 5.7× against 7.1×. Dorian LPG Ltd. grew revenue faster over the last twelve months: 81.1% against 15.6%. Dorian LPG Ltd. has the higher net margin (55.0% vs 51.4%) and the lower return on invested capital (15.0% vs 29.3%). Both pay a dividend; Dorian LPG Ltd. yields more (2.52% vs 1.03%). Across the 23 metrics below, Teekay Tankers Ltd. leads on 15 and Dorian LPG Ltd. on 8.

Valuation

Metric LPG TNK Oil & Gas Midstream median
P/E 7.07 5.69 12.77
P/S 3.89 2.93 2.36
P/B 1.84 1.42 2.09
Price to free cash flow 9.92 5.18 9.71
EV/EBITDA 5.96 3.45 8.30
EV/Sales 4.17 1.90 3.88
Earnings yield 14.14% 17.58% 7.15%
Free cash flow yield 10.08% 19.31% 6.86%

Profitability

Metric LPG TNK Oil & Gas Midstream median
Gross margin 85.68% 50.33% 56.58%
Operating margin 57.63% 47.65% 34.18%
Net margin 55.00% 51.35% 22.50%
Free cash flow margin 39.23% 56.49% 13.70%
Return on equity 28.34% 28.04% 14.65%
Return on assets 17.63% 25.45% 5.00%
Return on invested capital 15.04% 29.30% 6.13%

Growth

Metric LPG TNK Oil & Gas Midstream median
Revenue growth (TTM) 81.06% 15.60% 15.60%
EPS growth (last fiscal year) 112.15% (13.16%) (7.86%)
Revenue growth, 5-year CAGR 8.79% 1.43% 9.59%
Net income growth, 5-year CAGR 15.91% 32.10% 0.00%

Health

Metric LPG TNK Oil & Gas Midstream median
Debt to equity 0.41 0.00 0.78
Current ratio 3.26 9.99 1.19
Net debt to EBITDA 0.82 (2.16) 3.42

Dividend

Metric LPG TNK Oil & Gas Midstream median
Dividend yield 2.52% 1.03% 4.54%
Payout ratio 0.18 0.06 0.76

Size

Metric LPG TNK Oil & Gas Midstream median
Market cap 2.30b 3.37b 3.73b

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