Head to Head Comparison: Ngl Energy Partners (NGL) vs. BP (BP)

BP (NYSE: BP) and Ngl Energy Partners (NYSE:NGL) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares BP and Ngl Energy Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BP $186.61 billion 0.70 $115.00 million $1.17 33.60
Ngl Energy Partners $13.02 billion 0.12 $136.81 million ($2.10) -6.31

Ngl Energy Partners has lower revenue, but higher earnings than BP. Ngl Energy Partners is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BP has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Ngl Energy Partners has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for BP and Ngl Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BP 2 7 9 0 2.39
Ngl Energy Partners 0 2 2 0 2.50

BP currently has a consensus target price of $38.11, indicating a potential downside of 3.04%. Ngl Energy Partners has a consensus target price of $17.75, indicating a potential upside of 33.96%. Given Ngl Energy Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Ngl Energy Partners is more favorable than BP.

Insider and Institutional Ownership

10.0% of BP shares are owned by institutional investors. Comparatively, 63.8% of Ngl Energy Partners shares are owned by institutional investors. 1.0% of BP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares BP and Ngl Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BP 1.70% 4.52% 1.68%
Ngl Energy Partners -1.40% -4.60% -1.45%

Dividends

BP pays an annual dividend of $2.38 per share and has a dividend yield of 6.1%. Ngl Energy Partners pays an annual dividend of $1.56 per share and has a dividend yield of 11.8%. BP pays out 203.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ngl Energy Partners pays out -74.3% of its earnings in the form of a dividend. Ngl Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

BP beats Ngl Energy Partners on 9 of the 15 factors compared between the two stocks.

About BP

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

About Ngl Energy Partners

NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company’s segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company’s refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.

Receive News & Ratings for BP plc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BP plc and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply