Teekay vs Teekay Tankers Which Is a Better Investment?

Teekay Corporation and Teekay Tankers are two distinct companies within the energy transportation industry. Teekay Corporation focuses on providing marine services to the oil and gas industry, while Teekay Tankers specializes in the transportation of crude oil and petroleum products. Both companies are publicly traded on the stock market, offering investors the opportunity to capitalize on the volatility of the energy sector. Understanding the differences and performance of Teekay Corporation and Teekay Tankers stocks is crucial for investors looking to navigate the complex world of energy investments.

Teekay or Teekay Tankers?

When comparing Teekay and Teekay Tankers, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Teekay and Teekay Tankers.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Teekay has a dividend yield of 51.42%, while Teekay Tankers has a dividend yield of 7.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Teekay reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Teekay Tankers reports a 5-year dividend growth of 0.00% year and a payout ratio of 24.33%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Teekay P/E ratio at 4.06 and Teekay Tankers's P/E ratio at 3.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Teekay P/B ratio is 0.73 while Teekay Tankers's P/B ratio is 0.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Teekay has seen a 5-year revenue growth of -0.10%, while Teekay Tankers's is 0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Teekay's ROE at 18.30% and Teekay Tankers's ROE at 25.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.14 for Teekay and $37.35 for Teekay Tankers. Over the past year, Teekay's prices ranged from $6.08 to $9.95, with a yearly change of 63.65%. Teekay Tankers's prices fluctuated between $37.35 and $74.20, with a yearly change of 98.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.