Critical Review: World Fuel Services Corporation (INT) vs. CrossAmerica Partners (CAPL)

CrossAmerica Partners (NYSE: CAPL) and World Fuel Services Corporation (NYSE:INT) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Insider and Institutional Ownership

37.1% of CrossAmerica Partners shares are held by institutional investors. Comparatively, 91.8% of World Fuel Services Corporation shares are held by institutional investors. 2.3% of World Fuel Services Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CrossAmerica Partners and World Fuel Services Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CrossAmerica Partners 0 2 3 0 2.60
World Fuel Services Corporation 0 0 1 0 3.00

CrossAmerica Partners currently has a consensus price target of $30.40, indicating a potential upside of 14.50%. World Fuel Services Corporation has a consensus price target of $48.00, indicating a potential upside of 45.85%. Given World Fuel Services Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe World Fuel Services Corporation is more favorable than CrossAmerica Partners.

Profitability

This table compares CrossAmerica Partners and World Fuel Services Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CrossAmerica Partners 0.06% 4.11% 0.94%
World Fuel Services Corporation 0.34% 5.60% 2.09%

Risk & Volatility

CrossAmerica Partners has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, World Fuel Services Corporation has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares CrossAmerica Partners and World Fuel Services Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CrossAmerica Partners $1.91 billion 0.47 $73.42 million ($0.03) -884.71
World Fuel Services Corporation $31.47 billion 0.07 $259.20 million $1.53 21.51

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

Dividends

CrossAmerica Partners pays an annual dividend of $2.49 per share and has a dividend yield of 9.4%. World Fuel Services Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. CrossAmerica Partners pays out -8,297.2% of its earnings in the form of a dividend. World Fuel Services Corporation pays out 15.7% 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. CrossAmerica Partners has increased its dividend for 2 consecutive years. CrossAmerica Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

World Fuel Services Corporation beats CrossAmerica Partners on 10 of the 17 factors compared between the two stocks.

CrossAmerica Partners Company Profile

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).

World Fuel Services Corporation Company Profile

World Fuel Services Corporation is engaged in providing aviation, marine and land energy, logistics and technology solutions to customers and suppliers around the world. The Company operates through three segments: Aviation, Marine and Land. In its Aviation segment, the Company offers fuel and related products and services. In its land segment, it offers fuel, crude oil, lubricants, power solutions through its global energy management service offerings, natural gas and related products and services to customers. Under marine segment, it offers fuel, lubricants and related products and services to customers, including international container and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the United States and foreign Governments, as well as other fuel suppliers. It offers solutions, such as oil and energy procurement, distribution and storage, financial solutions and consulting services.

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