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

Teekay Tankers Ltd. and TORM PLC are both Oil & Gas Midstream companies. Teekay Tankers Ltd. and TORM PLC are of similar size ($3.5B and $3.3B). Teekay Tankers Ltd. trades at the lower P/E: 5.5× against 5.5×. 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 (17.7% vs 3.70%). Across the 23 metrics below, Teekay Tankers Ltd. leads on 17 and TORM PLC on 6.

Valuation

Metric TNK TRMD Oil & Gas Midstream median
P/E 5.52 5.54 13.19
P/S 2.84 1.99 2.60
P/B 1.38 1.38 2.08
Price to free cash flow 5.03 12.75 10.14
EV/EBITDA 3.35 4.60 8.11
EV/Sales 1.85 2.40 3.89
Earnings yield 18.11% 18.04% 6.83%
Free cash flow yield 19.90% 7.84% 6.94%

Profitability

Metric TNK TRMD Oil & Gas Midstream median
Gross margin 50.33% 85.12% 58.81%
Operating margin 47.65% 39.07% 32.14%
Net margin 51.35% 35.48% 21.16%
Free cash flow margin 56.49% 15.63% 10.15%
Return on equity 28.04% 26.82% 11.30%
Return on assets 25.45% 17.30% 5.00%
Return on invested capital 29.30% 13.19% 6.13%

Growth

Metric TNK TRMD Oil & Gas Midstream median
Revenue growth (TTM) 15.60% 33.16% 15.44%
EPS growth (last fiscal year) (13.16%) (55.19%) —
Revenue growth, 5-year CAGR 1.43% 12.38% 8.96%
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 0.78
Current ratio 9.99 2.27 1.19
Net debt to EBITDA (2.16) 1.52 3.42

Dividend

Metric TNK TRMD Oil & Gas Midstream median
Dividend yield 3.70% 17.65% 7.29%
Payout ratio 0.02 0.65 0.64

Size

Metric TNK TRMD Oil & Gas Midstream median
Market cap 3.26b 3.54b 3.61b

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