SemGroup Corp (NASDAQ: SEMG) and Ship Finance International Limited (NYSE:SFL) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares SemGroup Corp and Ship Finance International Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SemGroup Corp||$1.66 billion||1.36||$147.28 million||N/A||N/A|
|Ship Finance International Limited||$382.53 million||3.53||$238.54 million||$1.23||11.75|
Ship Finance International Limited has higher revenue, but lower earnings than SemGroup Corp.
Ship Finance International Limited pays an annual dividend of $1.40 per share and has a dividend yield of 9.7%. SemGroup Corp does not pay a dividend. Ship Finance International Limited pays out 113.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ship Finance International Limited has raised its dividend for 5 consecutive years.
Insider and Institutional Ownership
26.4% of Ship Finance International Limited shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for SemGroup Corp and Ship Finance International Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ship Finance International Limited||0||1||0||0||2.00|
SemGroup Corp presently has a consensus target price of $33.00, suggesting a potential upside of 15.18%. Ship Finance International Limited has a consensus target price of $15.00, suggesting a potential upside of 3.81%. Given SemGroup Corp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SemGroup Corp is more favorable than Ship Finance International Limited.
This table compares SemGroup Corp and Ship Finance International Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ship Finance International Limited||29.59%||11.26%||4.24%|
Ship Finance International Limited beats SemGroup Corp on 8 of the 14 factors compared between the two stocks.
SemGroup Corp Company Profile
SemGroup Corporation is a provider of gathering, transportation, storage, distribution, marketing and other midstream services to producers, refiners of petroleum products and other market participants located in the Midwest and Rocky Mountain regions of the United States and Canada. The Company’s segments include Crude Transportation, which operates crude oil pipelines and truck transportation businesses in the United States; Crude Facilities, which operates crude oil storage and terminal businesses in the United States; Crude Supply and Logistics, which operates a crude oil marketing business; SemGas, which provides natural gas gathering and processing services; SemCAMS, which operates natural gas processing and gathering facilities in Alberta, Canada; SemLogistics, which owns petroleum products storage facility in the United Kingdom, and SemMexico, which provides liquid asphalt cement products and product application services to the Mexican market, and Corporate and Other.
Ship Finance International Limited Company Profile
Ship Finance International Limited is a holding, and international ship owning and chartering company. The Company is engaged in the ownership and operation of vessels and offshore related assets, and also involved in the charter, purchase and sale of assets. Its assets consist of approximately 20 oil tankers, over 20 dry bulk carriers, approximately 20 container vessels, including a newbuilding, two car carriers, two jack-up drilling rigs, two ultra-deepwater drilling units, five offshore supply vessels, two chemical tankers and two newbuilding oil product tankers. Its oil tankers, chemical tankers and oil product tankers are all double-hull vessels. It has over nine asset types, including crude oil tankers, oil product tankers, chemical tankers, container vessels, car carriers, dry bulk carriers, jack-up drilling rigs, ultra-deepwater drilling units and offshore supply vessels. Its assets consist of a fleet of Suezmax tankers, crude carriers and oil/bulk/ore carriers.
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