Contrasting Koninklijke Vopak (OTCMKTS:VOPKY) and Eagle Point Credit (NYSE:ECC)

Koninklijke Vopak (OTCMKTS:VOPKY) and Eagle Point Credit (NYSE:ECC) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Dividends

Koninklijke Vopak pays an annual dividend of $1.30 per share and has a dividend yield of 2.9%. Eagle Point Credit pays an annual dividend of $1.68 per share and has a dividend yield of 18.5%. Koninklijke Vopak pays out 36.9% of its earnings in the form of a dividend. Eagle Point Credit pays out 210.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Koninklijke Vopak has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Eagle Point Credit has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Koninklijke Vopak and Eagle Point Credit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke Vopak	0	0	0	0	0.00
Eagle Point Credit	0	1	0	0	2.00

Eagle Point Credit has a consensus target price of $10.00, suggesting a potential upside of 10.38%. Given Eagle Point Credit’s stronger consensus rating and higher possible upside, analysts clearly believe Eagle Point Credit is more favorable than Koninklijke Vopak.

Earnings & Valuation

This table compares Koninklijke Vopak and Eagle Point Credit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke Vopak	$1.54 billion	3.60	$493.20 million	$3.52	12.54
Eagle Point Credit	$130.04 million	5.36	$118.75 million	$0.80	11.33

Koninklijke Vopak has higher revenue and earnings than Eagle Point Credit. Eagle Point Credit is trading at a lower price-to-earnings ratio than Koninklijke Vopak, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

19.5% of Eagle Point Credit shares are owned by institutional investors. 0.2% of Eagle Point Credit shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Koninklijke Vopak and Eagle Point Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke Vopak	29.99%	12.85%	6.52%
Eagle Point Credit	36.60%	12.87%	9.17%

Summary

Eagle Point Credit beats Koninklijke Vopak on 10 of the 15 factors compared between the two stocks.

About Koninklijke Vopak

Koninklijke Vopak N.V., an independent tank storage company, stores and handles liquid chemicals, gases, and oil products to the energy and manufacturing markets worldwide. The company operates LPG and chemical gas, industrial, chemical, and oil terminals; and owns and operates specialized facilities consisting of tanks, jetties, truck loading stations, and pipelines. It stores and handles chemicals, such as methanol, xylenes, styrene, alpha olefins, and mono-ethylene glycol; gas, including LNG, LPG, ethylene, butadiene, and ammonia; oil products consisting of crude oil, fuel oil, diesel, jet fuel, gasoline, and naphtha; and vegoils and biofuels comprising ethanol, biodiesel, and sustainable aviation fuel. In addition, the company is involved in the development of infrastructure solutions within ports for low-carbon and renewable hydrogen, CO2, long-duration energy storage, and sustainable fuels and feedstocks. Further, it operates 76 terminals in 23 countries with a storage capacity of 35.2 million cubic meters. It serves producers, manufacturers, distributors, governments, traders, and chemical and energy companies. The company was founded in 1616 and is headquartered in Rotterdam, the Netherlands.

About Eagle Point Credit

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.