Head-To-Head Comparison: Teekay (TK) versus Its Competitors

Teekay (NYSE: TK) is one of 44 publicly-traded companies in the “Deep sea foreign transportation of freight” industry, but how does it contrast to its peers? We will compare Teekay to similar businesses based on the strength of its analyst recommendations, valuation, earnings, institutional ownership, dividends, profitability and risk.

Institutional and Insider Ownership

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27.1% of Teekay shares are held by institutional investors. Comparatively, 45.0% of shares of all “Deep sea foreign transportation of freight” companies are held by institutional investors. 2.4% of Teekay shares are held by company insiders. Comparatively, 23.8% of shares of all “Deep sea foreign transportation of freight” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Teekay and its peers’ 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 -19.92% 2.23% -0.48%

Analyst Ratings

This is a summary of current ratings and recommmendations for Teekay and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teekay 1 2 0 0 1.67
Teekay Competitors 330 868 1000 10 2.31

Teekay presently has a consensus target price of $7.00, suggesting a potential downside of 13.47%. As a group, “Deep sea foreign transportation of freight” companies have a potential upside of 47.58%. Given Teekay’s peers stronger consensus rating and higher possible upside, analysts clearly believe Teekay has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Teekay and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Teekay $1.88 billion -$151.71 million -5.86
Teekay Competitors $311.95 million -$36.87 million -6.40

Teekay has higher revenue, but lower earnings than its peers. Teekay is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Teekay pays an annual dividend of $0.22 per share and has a dividend yield of 2.7%. Teekay pays out -15.9% of its earnings in the form of a dividend. As a group, “Deep sea foreign transportation of freight” companies pay a dividend yield of 7.3% and pay out 409.4% of their earnings in the form of a dividend.

Risk & 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 peers have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Summary

Teekay peers beat Teekay on 10 of the 15 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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