Valero Energy Partners (NYSE: VLP) and Western Refining Logistics (NYSE:WNRL) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
This table compares Valero Energy Partners and Western Refining Logistics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Valero Energy Partners||54.43%||184.08%||22.28%|
|Western Refining Logistics||3.05%||78.84%||12.72%|
Valero Energy Partners pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. Western Refining Logistics pays an annual dividend of $1.87 per share and has a dividend yield of 7.8%. Valero Energy Partners pays out 67.8% of its earnings in the form of a dividend. Western Refining Logistics pays out 174.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Valero Energy Partners has raised its dividend for 3 consecutive years and Western Refining Logistics has raised its dividend for 3 consecutive years.
This is a breakdown of recent ratings and recommmendations for Valero Energy Partners and Western Refining Logistics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valero Energy Partners||0||2||6||0||2.75|
|Western Refining Logistics||0||0||0||0||N/A|
Valero Energy Partners currently has a consensus price target of $52.57, indicating a potential upside of 12.60%. Given Valero Energy Partners’ higher probable upside, equities research analysts clearly believe Valero Energy Partners is more favorable than Western Refining Logistics.
Valuation & Earnings
This table compares Valero Energy Partners and Western Refining Logistics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Valero Energy Partners||$362.62 million||9.10||$188.83 million||$2.83||16.50|
|Western Refining Logistics||N/A||N/A||N/A||$1.07||22.29|
Valero Energy Partners has higher revenue and earnings than Western Refining Logistics. Valero Energy Partners is trading at a lower price-to-earnings ratio than Western Refining Logistics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
29.2% of Valero Energy Partners shares are held by institutional investors. Comparatively, 40.1% of Western Refining Logistics shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Valero Energy Partners has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Western Refining Logistics has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Valero Energy Partners beats Western Refining Logistics on 8 of the 12 factors compared between the two stocks.
Valero Energy Partners Company Profile
Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.
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.
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