Head to Head Analysis: StealthGas (NASDAQ:GASS) & KNOT Offshore Partners (NYSE:KNOP)

StealthGas (NASDAQ:GASS) and KNOT Offshore Partners (NYSE:KNOP) are both small-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

StealthGas has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, KNOT Offshore Partners has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500.

Insider & Institutional Ownership

66.3% of StealthGas shares are owned by institutional investors. Comparatively, 26.8% of KNOT Offshore Partners shares are owned by institutional investors. 22.1% of StealthGas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares StealthGas and KNOT Offshore Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StealthGas	35.02%	9.62%	8.75%
KNOT Offshore Partners	14.69%	9.00%	2.93%

Valuation & Earnings

This table compares StealthGas and KNOT Offshore Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StealthGas	$177.26 million	1.48	$69.86 million	$1.68	4.19
KNOT Offshore Partners	$359.21 million	0.98	$13.93 million	$1.55	6.61

StealthGas has higher earnings, but lower revenue than KNOT Offshore Partners. StealthGas is trading at a lower price-to-earnings ratio than KNOT Offshore Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for StealthGas and KNOT Offshore Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StealthGas	0	0	1	0	3.00
KNOT Offshore Partners	0	5	0	0	2.00

Summary

StealthGas beats KNOT Offshore Partners on 11 of the 13 factors compared between the two stocks.

About StealthGas

StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users worldwide. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer, as well as ammonia; refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel; and edible oils and chemicals. It offers crude oil and natural gas. The company operates a fleet of 33 LPG carries, including six JV vessels. StealthGas Inc. was incorporated in 2004 and is based in Athens, Greece.

About KNOT Offshore Partners

KNOT Offshore Partners LP acquires, owns, and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company provides loading, transportation, and discharge of crude oil under time charters and bareboat charters. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.