NGL Energy Partners LP (NGL) vs Teekay Tankers Ltd. (TNK)

NGL Energy Partners LP and Teekay Tankers Ltd. are both Oil & Gas Midstream companies. Teekay Tankers Ltd. is the larger, with a market value of $2.8B against $1.8B — 1.5× the size. NGL Energy Partners LP has negative trailing earnings, so its P/E is not meaningful; Teekay Tankers Ltd. trades at 5.0×. Teekay Tankers Ltd. grew revenue faster over the last twelve months: 15.6% against 5.76%. Teekay Tankers Ltd. has the higher net margin (51.4% vs −9.96%) and the higher return on invested capital (29.3% vs 2.94%). Across the 20 metrics below, Teekay Tankers Ltd. leads on 16 and NGL Energy Partners LP on 4.

Valuation

Metric NGL TNK Oil & Gas Midstream median
P/E n/m 5.01 11.80
P/S 0.53 2.58 2.38
P/B n/m 1.25 1.65
Price to free cash flow 18.44 4.56 7.76
EV/EBITDA 12.61 2.82 7.88
EV/Sales 1.46 1.55 3.36
Earnings yield (18.87%) 19.95% 7.98%
Free cash flow yield 5.42% 21.91% 7.23%

Profitability

Metric NGL TNK Oil & Gas Midstream median
Gross margin 29.52% 50.33% 55.22%
Operating margin 4.05% 47.65% 35.83%
Net margin (9.96%) 51.35% 20.12%
Free cash flow margin 2.89% 56.49% 14.43%
Return on equity 88.77% 28.04% 14.03%
Return on assets (8.39%) 25.45% 4.62%
Return on invested capital 2.94% 29.30% 6.10%

Growth

Metric NGL TNK Oil & Gas Midstream median
Revenue growth (TTM) 5.76% 15.60% 15.70%
EPS growth (last fiscal year) (431.67%) (13.16%) (7.78%)
Revenue growth, 5-year CAGR (9.60%) 1.43% 10.05%
Net income growth, 5-year CAGR 0.00% 32.10% 0.00%

Health

Metric NGL TNK Oil & Gas Midstream median
Debt to equity (13.85) 0.00 0.77
Current ratio 1.14 9.99 1.16
Net debt to EBITDA 8.88 (2.16) 3.46

Dividend

Metric NGL TNK Oil & Gas Midstream median
Dividend yield — 1.17% 5.03%
Payout ratio — 0.06 0.73

Size

Metric NGL TNK Oil & Gas Midstream median
Market cap 1.84b 2.84b 3.30b

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