Reviewing Navigator (NYSE:NVGS) and Martin Midstream Partners (NASDAQ:MMLP)

Navigator (NYSE:NVGS) and Martin Midstream Partners (NASDAQ:MMLP) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Profitability

This table compares Navigator and Martin Midstream Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navigator	15.57%	6.56%	3.67%
Martin Midstream Partners	-2.91%	N/A	-3.76%

Institutional and Insider Ownership

19.0% of Navigator shares are owned by institutional investors. Comparatively, 34.9% of Martin Midstream Partners shares are owned by institutional investors. 0.4% of Navigator shares are owned by company insiders. Comparatively, 17.0% of Martin Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Navigator pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Martin Midstream Partners pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Navigator pays out 15.7% of its earnings in the form of a dividend. Martin Midstream Partners pays out -3.8% 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. Navigator has raised its dividend for 1 consecutive years. Navigator is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Navigator has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Martin Midstream Partners has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Navigator and Martin Midstream Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navigator	0	0	4	0	3.00
Martin Midstream Partners	1	0	0	0	1.00

Navigator currently has a consensus target price of $22.33, indicating a potential upside of 45.41%. Given Navigator’s stronger consensus rating and higher possible upside, research analysts plainly believe Navigator is more favorable than Martin Midstream Partners.

Earnings and Valuation

This table compares Navigator and Martin Midstream Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navigator	$566.68 million	1.88	$85.57 million	$1.27	12.09
Martin Midstream Partners	$707.62 million	0.15	-$5.21 million	($0.52)	-5.25

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

Summary

Navigator beats Martin Midstream Partners on 13 of the 17 factors compared between the two stocks.

About Navigator

Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.

About Martin Midstream Partners

Martin Midstream Partners L.P., together with its subsidiaries, provides terminalling, processing, storage, and packaging services for petroleum products and by-products primarily in the United States. The company operates in four segments: Terminalling and Storage, Transportation, Sulfur Services, and Specialty Products. The company's Terminalling and Storage segment owns or operates various marine shore-based terminal facilities and specialty terminal facilities that provide storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products. This segment also offers land rental services to oil and gas companies, as well as storage and handling services for lubricants and fuels. Its Transportation segment operates various trucks and tank trailers; and inland marine tank barges, inland push boats, and articulated offshore tug and barge unit to transport petroleum products and by-products, petrochemicals, and chemicals. The company's Sulfur Services segment processes molten sulfur into prilled or pelletized sulfur, which is used in the production of fertilizers and industrial chemicals. Its Specialty Products segment stores, distributes, and transports natural gas liquids for wholesale deliveries to refineries, industrial natural gas liquid users, and propane retailers. Martin Midstream GP LLC serves as a general partner of the company. Martin Midstream Partners L.P. was incorporated in 2002 and is based in Kilgore, Texas.