Head-To-Head Contrast: Nordic American Tankers (NYSE:NAT) versus Northern Oil and Gas (NYSE:NOG)
by Tristan Rich · The Markets DailyNorthern Oil and Gas (NYSE:NOG – Get Free Report) and Nordic American Tankers (NYSE:NAT – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Volatility and Risk
Northern Oil and Gas has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Nordic American Tankers has a beta of -0.54, suggesting that its share price is 154% less volatile than the S&P 500.
Dividends
Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 7.0%. Nordic American Tankers pays an annual dividend of $0.88 per share and has a dividend yield of 12.2%. Northern Oil and Gas pays out -34.7% of its earnings in the form of a dividend. Nordic American Tankers pays out 149.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Oil and Gas has raised its dividend for 4 consecutive years and Nordic American Tankers has raised its dividend for 1 consecutive years.
Earnings & Valuation
This table compares Northern Oil and Gas and Nordic American Tankers”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northern Oil and Gas | $2.48 billion | 1.11 | $38.76 million | ($5.18) | -4.99 |
| Nordic American Tankers | $182.54 million | 8.33 | $12.27 million | $0.59 | 12.18 |
Northern Oil and Gas has higher revenue and earnings than Nordic American Tankers. Northern Oil and Gas is trading at a lower price-to-earnings ratio than Nordic American Tankers, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.8% of Northern Oil and Gas shares are held by institutional investors. Comparatively, 44.3% of Nordic American Tankers shares are held by institutional investors. 2.8% of Northern Oil and Gas shares are held by company insiders. Comparatively, 2.9% of Nordic American Tankers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Northern Oil and Gas and Nordic American Tankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northern Oil and Gas | -25.35% | 18.69% | 6.85% |
| Nordic American Tankers | 47.04% | 20.58% | 10.38% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Northern Oil and Gas and Nordic American Tankers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northern Oil and Gas | 2 | 4 | 3 | 0 | 2.11 |
| Nordic American Tankers | 1 | 2 | 2 | 0 | 2.20 |
Northern Oil and Gas currently has a consensus price target of $31.00, indicating a potential upside of 19.90%. Nordic American Tankers has a consensus price target of $5.33, indicating a potential downside of 25.77%. Given Northern Oil and Gas’ higher possible upside, analysts clearly believe Northern Oil and Gas is more favorable than Nordic American Tankers.
Summary
Nordic American Tankers beats Northern Oil and Gas on 9 of the 17 factors compared between the two stocks.
About Northern Oil and Gas
Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.
About Nordic American Tankers
Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.