Teekay Tankers (NYSE:TNK – Get Free Report) and China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Profitability
This table compares Teekay Tankers and China Shenhua Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teekay Tankers | 51.35% | 22.11% | 20.23% |
| China Shenhua Energy | 15.92% | 11.40% | 7.77% |
Analyst Recommendations
This is a summary of recent recommendations for Teekay Tankers and China Shenhua Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teekay Tankers | 1 | 3 | 2 | 0 | 2.17 |
| China Shenhua Energy | 0 | 1 | 0 | 0 | 2.00 |
Teekay Tankers presently has a consensus price target of $95.50, indicating a potential upside of 7.15%. Given Teekay Tankers’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Teekay Tankers is more favorable than China Shenhua Energy.
Insider & Institutional Ownership
52.7% of Teekay Tankers shares are owned by institutional investors. 1.9% of Teekay Tankers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Teekay Tankers has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500. Comparatively, China Shenhua Energy has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.
Dividends
Teekay Tankers pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. China Shenhua Energy pays an annual dividend of $0.91 per share and has a dividend yield of 4.2%. Teekay Tankers pays out 5.9% of its earnings in the form of a dividend. China Shenhua Energy pays out 55.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teekay Tankers has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Teekay Tankers and China Shenhua Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teekay Tankers | $951.80 million | 3.24 | $351.19 million | $16.97 | 5.25 |
| China Shenhua Energy | $41.03 billion | 2.65 | $7.54 billion | $1.65 | 13.26 |
China Shenhua Energy has higher revenue and earnings than Teekay Tankers. Teekay Tankers is trading at a lower price-to-earnings ratio than China Shenhua Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Teekay Tankers beats China Shenhua Energy on 12 of the 17 factors compared between the two stocks.
About Teekay Tankers
Teekay Tankers Ltd. is an international marine transportation company that owns and operates tankers carrying crude oil and refined petroleum products. Its fleet includes crude-oil vessels such as Aframax and Suezmax tankers, as well as product carriers. The company serves customers in the global energy industry, including oil companies and commodity traders. Its vessels transport petroleum by sea on routes around the world, with employment through a mix of spot voyages and longer-term charter arrangements.
About China Shenhua Energy
China Shenhua Energy Company Limited is an integrated energy company focused on coal and power. Its activities include coal mining, processing and sales, as well as electricity and heat generation. The company also produces coal-related chemical products. China Shenhua operates transportation infrastructure that supports its energy business, including railways, ports and shipping services. This integrated network moves coal from production areas to customers and power plants. The company’s operations and customer base are primarily in China.
Receive News & Ratings for Teekay Tankers Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Teekay Tankers and related companies with MarketBeat.com's FREE daily email newsletter.
