Head to Head Review: USD Partners (USDP) and Foster Wheeler AG (FWLT)

USD Partners (NYSE: USDP) and Foster Wheeler AG (NASDAQ:FWLT) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Dividends

USD Partners pays an annual dividend of $1.38 per share and has a dividend yield of 13.7%. Foster Wheeler AG does not pay a dividend. USD Partners pays out 140.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

30.4% of USD Partners shares are owned by institutional investors. 2.6% of USD Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares USD Partners and Foster Wheeler AG’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
USD Partners $111.13 million 2.40 $24.17 million $0.98 10.31
Foster Wheeler AG N/A N/A N/A $0.90 N/A

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

Analyst Recommendations

This is a summary of recent ratings and price targets for USD Partners and Foster Wheeler AG, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USD Partners 1 0 1 0 2.00
Foster Wheeler AG 0 0 0 0 N/A

USD Partners presently has a consensus price target of $17.00, indicating a potential upside of 68.32%.

Profitability

This table compares USD Partners and Foster Wheeler AG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USD Partners 19.98% 35.73% 7.27%
Foster Wheeler AG N/A N/A N/A

Summary

USD Partners beats Foster Wheeler AG on 9 of the 10 factors compared between the two stocks.

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.

About Foster Wheeler AG

Foster Wheeler AG (Foster Wheeler) is a supplier of engineering, construction and project management contractor and power equipment. It operates through two business groups: Global Engineering and Construction Group (Global E&C Group), and Global Power Group. Its Global E&C Group, which operates worldwide, designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure. Its Global Power Group designs, manufactures and erects steam generators and auxiliary equipment for electric power generating stations, district heating and power plants and industrial facilities worldwide.In May 2014, the Company announced that a subsidiary of its Global Power Group acquired Siemens Environmental Systems and Services business.

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