Critical Comparison: Flex LNG (NYSE:FLNG) and Keppel (OTCMKTS:KPELY)

by · The Markets Daily

Keppel (OTCMKTS:KPELYGet Free Report) and Flex LNG (NYSE:FLNGGet Free Report) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings and Valuation

This table compares Keppel and Flex LNG”s revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Keppel$4.58 billion3.30$603.62 millionN/AN/A
Flex LNG$347.64 million4.70$74.82 million$1.4021.57

Keppel has higher revenue and earnings than Flex LNG.

Dividends

Keppel pays an annual dividend of $0.60 per share and has a dividend yield of 3.6%. Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 9.9%. Flex LNG pays out 214.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Keppel and Flex LNG, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Keppel01102.50
Flex LNG22001.50

Flex LNG has a consensus target price of $24.00, suggesting a potential downside of 20.51%. Given Flex LNG’s higher possible upside, analysts clearly believe Flex LNG is more favorable than Keppel.

Volatility & Risk

Keppel has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Profitability

This table compares Keppel and Flex LNG’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
KeppelN/AN/AN/A
Flex LNG22.26%12.15%3.37%

About Keppel

(Get Free Report)

Keppel Ltd., an investment holding company, engages in the infrastructure, real estate, and connectivity business in Singapore, China, Hong Kong, other far East and ASEAN countries, and internationally. The company operates through, Infrastructure, Real Estate, and Connectivity. It manages private funds and listed real estate investment and business trusts, in areas of infrastructure, real estate, and connectivity; energy and environmental solutions and services, including commercial power generation, renewables, environmental engineering and construction, and infrastructure; operation and maintenance; property development and investment; master development; sustainable and innovative urban space solutions; and system integration solutions and services. The company develops and operates data centres; telecommunication services; sells telecommunication and information technology equipment; procures, installs, operates, and maintenance of solar generation facilities; and operates golf club. In addition, it engages electricity, energy, and power supply; general wholesale trading; purchase and sells gaseous fuels; develops of district heating and cooling system; environmental, technologies, and engineering works; solid waste treatment; design and constructs waste-to-energy and desalination plants; commercial power generation; renewable energy generation; and owns and operates hotel. Further, the company offers property investment and development; real estate construction; trades communication systems and accessories; operates telecommunication network; IT consulting and outsourcing; distributes of IT products; colocation services; fixed and other related telecommunication services; ICT solutions; management services; fund management; investment advisory; and real estate investment trust. The company was formerly known as Keppel Corporation and changed its name to Keppel Ltd. in January 2024. Keppel Ltd. Limited was incorporated in 1968 and is headquartered in Singapore.

About Flex LNG

(Get Free Report)

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.