Reviewing Teekay (TK) and Its Peers

Teekay (NYSE: TK) is one of 144 publicly-traded companies in the “TRANSPORTATION” industry, but how does it weigh in compared to its rivals? We will compare Teekay to related companies based on the strength of its earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Dividends

Teekay pays an annual dividend of $0.22 per share and has a dividend yield of 2.7%. Teekay pays out -12.4% of its earnings in the form of a dividend. As a group, “TRANSPORTATION” companies pay a dividend yield of 2.2% and pay out -1,036.2% of their earnings in the form of a dividend.

Profitability

This table compares Teekay and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teekay -8.05% -3.36% -1.08%
Teekay Competitors 0.94% 6.75% 3.13%

Insider & Institutional Ownership

27.1% of Teekay shares are owned by institutional investors. Comparatively, 62.8% of shares of all “TRANSPORTATION” companies are owned by institutional investors. 2.4% of Teekay shares are owned by insiders. Comparatively, 16.7% of shares of all “TRANSPORTATION” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Teekay and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Teekay $1.88 billion -$151.71 million -4.63
Teekay Competitors $3.23 billion $305.22 million 19.33

Teekay’s rivals have higher revenue and earnings than Teekay. Teekay is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Teekay has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Teekay’s rivals have a beta of 1.19, indicating that their average stock price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Teekay and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay 1 2 0 0 1.67
Teekay Competitors 1087 3981 4808 199 2.41

Teekay presently has a consensus target price of $7.00, indicating a potential downside of 14.63%. As a group, “TRANSPORTATION” companies have a potential upside of 8.22%. Given Teekay’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Teekay has less favorable growth aspects than its rivals.

Summary

Teekay rivals beat Teekay on 12 of the 14 factors compared.

Teekay Company Profile

Teekay Corporation (Teekay) is a provider of crude oil and gas marine transportation services. The Company also offers offshore oil production, storage and offloading services, primarily under long-term, fixed-rate contracts. The Company is engaged in the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipping sectors, as well as in the operations in the offshore production, storage and transportation sector. It is also involved in the conventional tanker business. Teekay provides a set of marine services to the oil and gas companies. The Company has four lines of business: offshore logistics (shuttle tankers, the HiLoad DP unit, floating storage and off-take (FSO) units, units for maintenance and safety (UMS), and long-distance towing and offshore installation vessels), offshore production (floating production, storage and offloading (FPSO) units), liquefied gas carriers and conventional tankers.

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