Tallgrass Energy Partners (NYSE: TEP) and Andeavor Logistics (NYSE:ANDX) are both mid-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
This table compares Tallgrass Energy Partners and Andeavor Logistics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tallgrass Energy Partners||64.13%||27.58%||11.52%|
This table compares Tallgrass Energy Partners and Andeavor Logistics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tallgrass Energy Partners||$605.12 million||5.51||$263.52 million||$3.74||12.18|
|Andeavor Logistics||$1.22 billion||8.23||$315.00 million||$2.35||19.76|
Andeavor Logistics has higher revenue and earnings than Tallgrass Energy Partners. Tallgrass Energy Partners is trading at a lower price-to-earnings ratio than Andeavor Logistics, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Tallgrass Energy Partners and Andeavor Logistics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tallgrass Energy Partners||0||4||5||0||2.56|
Tallgrass Energy Partners presently has a consensus price target of $59.75, suggesting a potential upside of 31.12%. Andeavor Logistics has a consensus price target of $55.38, suggesting a potential upside of 19.24%. Given Tallgrass Energy Partners’ higher possible upside, analysts clearly believe Tallgrass Energy Partners is more favorable than Andeavor Logistics.
Institutional & Insider Ownership
62.1% of Tallgrass Energy Partners shares are owned by institutional investors. Comparatively, 34.9% of Andeavor Logistics shares are owned by institutional investors. 0.2% of Andeavor Logistics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Tallgrass Energy Partners has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Andeavor Logistics has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.
Tallgrass Energy Partners pays an annual dividend of $3.70 per share and has a dividend yield of 8.1%. Andeavor Logistics pays an annual dividend of $3.94 per share and has a dividend yield of 8.5%. Tallgrass Energy Partners pays out 98.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Andeavor Logistics pays out 167.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tallgrass Energy Partners has increased its dividend for 3 consecutive years.
Andeavor Logistics beats Tallgrass Energy Partners on 9 of the 17 factors compared between the two stocks.
Tallgrass Energy Partners Company Profile
Tallgrass Energy Partners, LP owns, operates, acquires and develops midstream energy assets in North America. The Company operates through three segments: Crude Oil Transportation & Logistics, Natural Gas Transportation & Logistics and Processing & Logistics. The Crude Oil Transportation & Logistics segment includes the ownership and operation of a Federal Energy Regulatory Commission (FERC) crude oil pipeline system, and crude oil storage and terminaling facilities. The Natural Gas Transportation & Logistics segment is engaged in the ownership and operation of FERC regulated interstate natural gas pipelines and integrated natural gas storage facilities. The Processing & Logistics segment is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities; the provision of water business services primarily to the oil and gas exploration and production industry, and the transportation of natural gas liquids (NGLs).
Andeavor Logistics Company Profile
Andeavor Logistics LP, formerly Tesoro Logistics LP, is a full-service logistics company operating in the western and mid-continent regions of the United States. The Company operates through three segments. Its Gathering segment consists of crude oil, natural gas and produced water gathering systems in the Bakken Region and Rockies Region. Its Processing segment consists of the Vermillion processing complex, the Uinta Basin processing complex, the Blacks Fork processing complex and the Emigrant Trail processing complex. Its Terminalling and Transportation segment consists of the Northwest Products Pipeline, which includes a regulated common carrier products, a regulated common carrier refined products pipeline system connecting Tesoro Corporation’s Kenai refinery to Anchorage, Alaska, and crude oil and refined products terminals and storage facilities in the western and midwestern United States; marine terminals in California; a petroleum coke handling and storage facility.
What are top analysts saying about Tallgrass Energy Partners? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Tallgrass Energy Partners and related companies.