Western Refining Logistics, (NYSE: WNRL) and Semgroup Corporation (NYSE:SEMG) are both mid-cap oil & gas transportation services – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
This table compares Western Refining Logistics, and Semgroup Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Refining Logistics,||3.05%||78.84%||12.72%|
This is a summary of current ratings for Western Refining Logistics, and Semgroup Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Refining Logistics,||0||1||1||0||2.50|
Western Refining Logistics, presently has a consensus target price of $35.00, suggesting a potential upside of 46.75%. Semgroup Corporation has a consensus target price of $32.33, suggesting a potential upside of 22.71%. Given Western Refining Logistics,’s stronger consensus rating and higher possible upside, equities analysts clearly believe Western Refining Logistics, is more favorable than Semgroup Corporation.
Valuation and Earnings
This table compares Western Refining Logistics, and Semgroup Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Western Refining Logistics,||N/A||N/A||N/A||$1.07||22.29|
|Semgroup Corporation||$1.33 billion||1.56||$2.09 million||$0.03||878.33|
Semgroup Corporation has higher revenue and earnings than Western Refining Logistics,. Western Refining Logistics, is trading at a lower price-to-earnings ratio than Semgroup Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Western Refining Logistics, has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Semgroup Corporation has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.
Insider and Institutional Ownership
40.1% of Western Refining Logistics, shares are owned by institutional investors. Comparatively, 92.4% of Semgroup Corporation shares are owned by institutional investors. 0.8% of Semgroup Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Semgroup Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 6.8%. Western Refining Logistics, does not pay a dividend. Semgroup Corporation pays out 6,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Refining Logistics, has increased its dividend for 2 consecutive years and Semgroup Corporation has increased its dividend for 3 consecutive years.
Western Refining Logistics, beats Semgroup Corporation on 7 of the 13 factors compared between the two stocks.
Western Refining Logistics, Company Profile
Western Refining Logistics, LP owns, operates, develops, and acquires logistics and related assets and businesses to include terminals, storage tanks, pipelines and other logistics assets related to the terminaling, transportation, storage and distribution of crude oil and refined products. The Company’s segments include logistics and wholesale. The Company operates its logistics business and wholesale business under commercial and service agreements with Western Refining, Inc. (Western). Its logistics assets consist of pipeline and gathering infrastructure and terminalling, transportation and storage assets in the Southwest and the Upper Great Plains region. Its wholesale business purchases its petroleum fuels from Western, and its lubricants and additional petroleum fuels from third-party suppliers.
Semgroup Corporation Company Profile
SemGroup Corporation is a provider of gathering, transportation, storage, distribution, marketing and other midstream services to producers, refiners of petroleum products and other market participants located in the Midwest and Rocky Mountain regions of the United States and Canada. The Company’s segments include Crude Transportation, which operates crude oil pipelines and truck transportation businesses in the United States; Crude Facilities, which operates crude oil storage and terminal businesses in the United States; Crude Supply and Logistics, which operates a crude oil marketing business; SemGas, which provides natural gas gathering and processing services; SemCAMS, which operates natural gas processing and gathering facilities in Alberta, Canada; SemLogistics, which owns petroleum products storage facility in the United Kingdom, and SemMexico, which provides liquid asphalt cement products and product application services to the Mexican market, and Corporate and Other.
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