Analyzing USD Partners (USDP) and Its Peers

USD Partners (NYSE: USDP) is one of 51 publicly-traded companies in the “Construction & Engineering” industry, but how does it contrast to its competitors? We will compare USD Partners to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

Volatility & Risk

USD Partners has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, USD Partners’ competitors have a beta of 1.37, meaning that their average share price is 37% more volatile than the S&P 500.

Dividends

USD Partners pays an annual dividend of $1.36 per share and has a dividend yield of 12.6%. USD Partners pays out 110.6% 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, “Construction & Engineering” companies pay a dividend yield of 1.4% and pay out 111.7% of their earnings in the form of a dividend. USD Partners is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations for USD Partners and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USD Partners 1 0 1 0 2.00
USD Partners Competitors 161 952 1611 18 2.54

USD Partners presently has a consensus target price of $17.00, indicating a potential upside of 57.41%. As a group, “Construction & Engineering” companies have a potential upside of 21.34%. Given USD Partners’ higher possible upside, research analysts clearly believe USD Partners is more favorable than its competitors.

Earnings and Valuation

This table compares USD Partners and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
USD Partners $111.13 million $24.17 million 8.78
USD Partners Competitors $4.79 billion $53.24 million 869.87

USD Partners’ competitors have higher revenue and earnings than USD Partners. USD Partners 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.

Insider & Institutional Ownership

30.2% of USD Partners shares are held by institutional investors. Comparatively, 79.1% of shares of all “Construction & Engineering” companies are held by institutional investors. 11.1% of shares of all “Construction & Engineering” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares USD Partners and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USD Partners 21.37% 42.91% 7.72%
USD Partners Competitors 1.79% -27.93% 2.23%

Summary

USD Partners competitors beat USD Partners on 9 of the 15 factors compared.

About USD Partners

USD Partners LP acquires, develops and operates energy-related logistics assets, including rail terminals and other midstream infrastructure. The Company’s segments include Terminalling services and Fleet services. The Terminalling services segment consists of various operations, including Hardisty terminal, Casper terminal and Ethanol terminals. Its Hardisty terminal is an origination terminal where it loads various grades of Canadian crude oil onto railcars for transportation to end markets. The Casper terminal is a crude oil storage, blending and railcar loading terminal located in Casper, Wyoming. Its San Antonio and West Colton terminals are unit train-capable destination terminals that transload ethanol received by rail from producers onto trucks to meet local ethanol demand. The Company provides its customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under master fleet services agreements.

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