Cool (NYSE:CLCO – Get Free Report) and FLEX LNG (NYSE:FLNG – Get Free Report) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Profitability
This table compares Cool and FLEX LNG’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cool | N/A | N/A | N/A |
| FLEX LNG | 40.68% | 18.39% | 6.09% |
Institutional and Insider Ownership
16.9% of Cool shares are held by institutional investors. Comparatively, 20.6% of FLEX LNG shares are held by institutional investors. 0.3% of FLEX LNG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cool | 0 | 0 | 1 | 0 | 3.00 |
| FLEX LNG | 0 | 3 | 0 | 0 | 2.00 |
FLEX LNG has a consensus target price of $36.00, indicating a potential upside of 18.46%. Given FLEX LNG’s higher probable upside, analysts plainly believe FLEX LNG is more favorable than Cool.
Earnings & Valuation
This table compares Cool and FLEX LNG’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cool | $161.96 million | 3.24 | $85.74 million | N/A | N/A |
| FLEX LNG | $365.82 million | 4.42 | $188.04 million | $2.78 | 10.93 |
FLEX LNG has higher revenue and earnings than Cool.
Dividends
Cool pays an annual dividend of $1.64 per share and has a dividend yield of 12.5%. FLEX LNG pays an annual dividend of $3.00 per share and has a dividend yield of 9.9%. FLEX LNG pays out 107.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
FLEX LNG beats Cool on 9 of the 13 factors compared between the two stocks.
About Cool
Cool Company Ltd. engages in the ownership, operation, and management of liquefied natural gas carriers (LNGCs) that provides supply chain support solutions for energy industry. The company owns and operates a fleet of LNGCs, including tri-fuel diesel electric vessels; and floating storage and regasification units for third parties. Cool Company Ltd. was incorporated in 2018 and is headquartered in Hamilton, Bermuda.
About FLEX LNG
Flex LNG Ltd., together with its subsidiaries, engages in the seaborne transportation of liquefied natural gas (LNG) worldwide. The company owns and operates vessels with M-type electronically controlled gas injection LNG carriers; and vessels with generation X dual fuel propulsion systems. It also provides chartering services. Flex LNG Ltd. was incorporated in 2006 and is based in Hamilton, Bermuda.
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