CrossAmerica Partners (CAPL) vs. Sunoco (SUN) Head-To-Head Analysis

Sunoco (NYSE: SUN) and CrossAmerica Partners (NYSE:CAPL) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Profitability

This table compares Sunoco and CrossAmerica Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunoco -5.00% 6.73% 1.83%
CrossAmerica Partners 0.06% 4.11% 0.94%

Dividends

Sunoco pays an annual dividend of $3.30 per share and has a dividend yield of 10.6%. CrossAmerica Partners pays an annual dividend of $2.49 per share and has a dividend yield of 9.5%. Sunoco pays out -37.4% of its earnings in the form of a dividend. CrossAmerica Partners pays out -8,297.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent ratings for Sunoco and CrossAmerica Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunoco 2 7 5 0 2.21
CrossAmerica Partners 0 2 3 0 2.60

Sunoco currently has a consensus target price of $31.00, indicating a potential downside of 0.06%. CrossAmerica Partners has a consensus target price of $30.40, indicating a potential upside of 15.81%. Given CrossAmerica Partners’ stronger consensus rating and higher possible upside, analysts plainly believe CrossAmerica Partners is more favorable than Sunoco.

Earnings and Valuation

This table compares Sunoco and CrossAmerica Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sunoco $16.72 billion 0.18 $672.28 million ($8.83) -3.51
CrossAmerica Partners $1.89 billion 0.47 $72.56 million ($0.03) -874.71

Sunoco has higher revenue and earnings than CrossAmerica Partners. CrossAmerica Partners is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

27.5% of Sunoco shares are held by institutional investors. Comparatively, 37.2% of CrossAmerica Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Sunoco has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, CrossAmerica Partners has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Summary

CrossAmerica Partners beats Sunoco on 8 of the 14 factors compared between the two stocks.

About Sunoco

Sunoco LP is engaged in the retail sale of motor fuels and merchandise through its Company-operated convenience stores and retail fuel sites, as well as the wholesale distribution of motor fuels to convenience stores, independent dealers, commercial customers and distributors. The Company operates through two segments: wholesale and retail. The Wholesale segment sells motor fuel to its retail segment and external customers. The Retail segment operates convenience stores selling a range of merchandise, food items, services and motor fuel. As of December 31, 2016, the Company operated approximately 1,345 convenience stores and fuel outlets in over 20 states, offering merchandise, food service, motor fuel and other services.

About CrossAmerica Partners

CrossAmerica Partners LP is a limited partnership engaged in the wholesale distribution of motor fuel, and the ownership and leasing of real estate used in the retail distribution of motor fuel. The Company operates in two segments: wholesale and retail. The wholesale segment is engaged in the wholesale distribution of motor fuel to lessee dealers, independent dealers, commission agents, Dunne Manning Stores LLC (DMS), CST Brands, Inc. and subsidiaries (CST) and company operated retail sites. The Retail segment owns or leases and operates retail sites. As of December 31, 2016, it distributed motor fuels to approximately 1,200 sites located in 29 states (Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Virginia, West Virginia and Wisconsin).

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