Magellan Midstream Partners L.P. (NYSE: MMP) is one of 53 public companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its competitors? We will compare Magellan Midstream Partners L.P. to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.
Institutional and Insider Ownership
61.1% of Magellan Midstream Partners L.P. shares are held by institutional investors. Comparatively, 57.3% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 0.2% of Magellan Midstream Partners L.P. shares are held by insiders. Comparatively, 9.3% of shares of all “Oil & Gas Transportation Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Magellan Midstream Partners L.P. and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magellan Midstream Partners L.P.||1||7||5||0||2.31|
|Magellan Midstream Partners L.P. Competitors||290||1777||2376||85||2.50|
Magellan Midstream Partners L.P. presently has a consensus price target of $78.83, suggesting a potential upside of 14.63%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 24.47%. Given Magellan Midstream Partners L.P.’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Magellan Midstream Partners L.P. has less favorable growth aspects than its competitors.
Magellan Midstream Partners L.P. pays an annual dividend of $3.56 per share and has a dividend yield of 5.2%. Magellan Midstream Partners L.P. pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.8% and pay out 171.5% of their earnings in the form of a dividend. Magellan Midstream Partners L.P. has raised its dividend for 7 consecutive years.
Valuation and Earnings
This table compares Magellan Midstream Partners L.P. and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Magellan Midstream Partners L.P.||$2.43 billion||$1.12 billion||18.69|
|Magellan Midstream Partners L.P. Competitors||$5.66 billion||$1.31 billion||34.99|
Magellan Midstream Partners L.P.’s competitors have higher revenue and earnings than Magellan Midstream Partners L.P.. Magellan Midstream Partners L.P. is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares Magellan Midstream Partners L.P. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magellan Midstream Partners L.P.||34.63%||41.81%||12.78%|
|Magellan Midstream Partners L.P. Competitors||17.28%||13.21%||5.49%|
Risk & Volatility
Magellan Midstream Partners L.P. has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Magellan Midstream Partners L.P.’s competitors have a beta of 1.39, suggesting that their average share price is 39% more volatile than the S&P 500.
Magellan Midstream Partners L.P. competitors beat Magellan Midstream Partners L.P. on 10 of the 15 factors compared.
About Magellan Midstream Partners L.P.
Magellan Midstream Partners, L.P. is principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. The Company operates through three segments: refined products, crude oil and marine storage. As of December 31, 2016, its asset portfolio, including the assets of its joint ventures, consisted of its refined products segment, consisting 9,700-mile refined products pipeline system with 53 terminals, as well as 26 independent terminals not connected to its pipeline system and its 1,100-mile ammonia pipeline system; its crude oil segment, consisted of approximately 2,200 miles of crude oil pipelines and storage facilities with an aggregate storage capacity of approximately 26 million barrels, of which 16 million are used for contract storage, and its marine storage segment, consisted of five marine terminals located along coastal waterways with an aggregate storage capacity of approximately 26 million barrels.
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