USD Partners (NYSE: USDP) and Emcor Group (NYSE:EME) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
USD Partners pays an annual dividend of $1.38 per share and has a dividend yield of 13.4%. Emcor Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. 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. Emcor Group pays out 8.9% of its earnings in the form of a dividend. USD Partners has increased its dividend for 5 consecutive years. USD Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares USD Partners and Emcor Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|USD Partners||$111.13 million||2.44||$24.17 million||$0.98||10.51|
|Emcor Group||$7.55 billion||0.62||$181.93 million||$3.58||22.24|
Emcor Group has higher revenue and earnings than USD Partners. USD Partners is trading at a lower price-to-earnings ratio than Emcor Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
27.0% of USD Partners shares are held by institutional investors. Comparatively, 94.4% of Emcor Group shares are held by institutional investors. 2.6% of USD Partners shares are held by company insiders. Comparatively, 2.0% of Emcor Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
USD Partners has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Emcor Group has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for USD Partners and Emcor Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
USD Partners presently has a consensus target price of $17.00, indicating a potential upside of 65.05%. Emcor Group has a consensus target price of $80.50, indicating a potential upside of 1.09%. Given USD Partners’ higher probable upside, equities analysts plainly believe USD Partners is more favorable than Emcor Group.
This table compares USD Partners and Emcor Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
USD Partners Company Profile
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.
Emcor Group Company Profile
EMCOR Group, Inc. is an electrical and mechanical construction, and facilities services firm in the United States. The Company provides building services and industrial services. Its segments are United States electrical construction and facilities services; United States mechanical construction and facilities services; United States building services; United States industrial services, and United Kingdom building services. As of December 31, 2016, its services were provided to a range of commercial, industrial, utility and institutional customers through approximately 75 operating subsidiaries and joint venture entities. It is providing construction services relating to electrical and mechanical systems in various types of non-residential and certain residential facilities, and in providing services relating to the operation, maintenance and management of facilities, including refineries and petrochemical plants. It operates various electrical and mechanical systems.
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