Critical Analysis: KNOT Offshore Partners (NYSE:KNOP) vs. Britannia Bulk (OTCMKTS:BBLKF)

Britannia Bulk (OTCMKTS:BBLKF) and KNOT Offshore Partners (NYSE:KNOP) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Britannia Bulk and KNOT Offshore Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Britannia Bulk	N/A	N/A	N/A	N/A	N/A
KNOT Offshore Partners	$364.44 million	0.93	$22.96 million	$0.54	18.68

KNOT Offshore Partners has higher revenue and earnings than Britannia Bulk.

Insider and Institutional Ownership

26.8% of KNOT Offshore Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Britannia Bulk has a beta of 9.27, meaning that its share price is 827% more volatile than the S&P 500. Comparatively, KNOT Offshore Partners has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Britannia Bulk and KNOT Offshore Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Britannia Bulk	0	0	0	0	0.00
KNOT Offshore Partners	0	3	1	1	2.60

KNOT Offshore Partners has a consensus target price of $14.00, indicating a potential upside of 38.82%. Given KNOT Offshore Partners’ stronger consensus rating and higher probable upside, analysts clearly believe KNOT Offshore Partners is more favorable than Britannia Bulk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Britannia Bulk	N/A	N/A	N/A
KNOT Offshore Partners	4.92%	6.36%	2.05%

Summary

KNOT Offshore Partners beats Britannia Bulk on 9 of the 10 factors compared between the two stocks.

About Britannia Bulk

Britannia Bulk Holdings Inc., together with its subsidiaries, provides drybulk shipping and maritime logistics services. It primarily transports coal, fertilizers, scrap metals, iron-ore, grain, and other bulk cargoes from the Baltic region to Northern and Western Europe. The company’s logistics services include port modification, fendering, lightening, dredging of berths, maximizing vessel throughput in ports, provision of floating cranes, and self-discharging equipment. The company serves power companies, coal producers, and commodity trading houses. Britannia Bulk Holdings Inc. was formerly known as Britannia Bulk PLC and changed its name to Britannia Bulk Holdings Inc. in June 2008. The company was founded in 1999 and is headquartered in London, the United Kingdom. As of 2010, Britannia Bulk Holdings Inc. is in liquidation.

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.