Teekay Tankers Ltd. (TNK) vs TORM PLC (TRMD)

Teekay Tankers Ltd. and TORM PLC are both Oil & Gas Midstream companies. TORM PLC is the larger, with a market value of $3.5B against $2.8B — 1.2× the size. Teekay Tankers Ltd. trades at the lower P/E: 4.9× against 5.6×. TORM PLC grew revenue faster over the last twelve months: 33.2% against 15.6%. Teekay Tankers Ltd. has the higher net margin (51.4% vs 35.5%) and the higher return on invested capital (29.3% vs 13.2%). Both pay a dividend; TORM PLC yields more (12.8% vs 1.20%). Across the 23 metrics below, Teekay Tankers Ltd. leads on 18 and TORM PLC on 5.

Valuation

Metric TNK TRMD Oil & Gas Midstream median
P/E 4.88 5.59 11.68
P/S 2.51 2.01 2.39
P/B 1.22 1.39 1.68
Price to free cash flow 4.44 12.86 8.52
EV/EBITDA 2.69 4.63 9.03
EV/Sales 1.48 2.41 3.43
Earnings yield 20.51% 17.89% 7.78%
Free cash flow yield 22.52% 7.78% 7.11%

Profitability

Metric TNK TRMD Oil & Gas Midstream median
Gross margin 50.33% 85.12% 54.87%
Operating margin 47.65% 39.07% 34.73%
Net margin 51.35% 35.48% 20.12%
Free cash flow margin 56.49% 15.63% 14.43%
Return on equity 28.04% 26.82% 11.73%
Return on assets 25.45% 17.30% 4.43%
Return on invested capital 29.30% 13.19% 6.10%

Growth

Metric TNK TRMD Oil & Gas Midstream median
Revenue growth (TTM) 15.60% 33.16% 14.88%
EPS growth (last fiscal year) (13.16%) (55.19%) (7.78%)
Revenue growth, 5-year CAGR 1.43% 12.38% 10.05%
Net income growth, 5-year CAGR 32.10% 26.49% 0.00%

Health

Metric TNK TRMD Oil & Gas Midstream median
Debt to equity 0.00 0.42 0.77
Current ratio 9.99 2.27 1.19
Net debt to EBITDA (2.16) 1.52 3.46

Dividend

Metric TNK TRMD Oil & Gas Midstream median
Dividend yield 1.20% 12.77% 4.94%
Payout ratio 0.06 0.73 0.73

Size

Metric TNK TRMD Oil & Gas Midstream median
Market cap 2.84b 3.52b 3.56b

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