Critical Review: Green Plains Partners (GPP) versus Braskem (BAK)

Green Plains Partners (NASDAQ: GPP) and Braskem (NYSE:BAK) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Valuation and Earnings

This table compares Green Plains Partners and Braskem’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Plains Partners $106.99 million 5.02 $58.86 million $1.81 9.34
Braskem $18.26 billion 0.55 $1.28 billion $3.20 7.88

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

Institutional & Insider Ownership

46.0% of Green Plains Partners shares are owned by institutional investors. Comparatively, 0.6% of Braskem shares are owned by institutional investors. 0.0% of Braskem shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Green Plains Partners pays an annual dividend of $1.90 per share and has a dividend yield of 11.2%. Braskem pays an annual dividend of $1.02 per share and has a dividend yield of 4.0%. Green Plains Partners pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Braskem pays out 31.9% of its earnings in the form of a dividend.

Profitability

This table compares Green Plains Partners and Braskem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Plains Partners 54.20% -89.44% 61.48%
Braskem 6.12% 51.49% 6.20%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Green Plains Partners and Braskem, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Plains Partners 1 1 3 0 2.40
Braskem 0 0 2 0 3.00

Green Plains Partners presently has a consensus target price of $19.40, indicating a potential upside of 14.79%. Given Green Plains Partners’ higher possible upside, equities analysts plainly believe Green Plains Partners is more favorable than Braskem.

Risk & Volatility

Green Plains Partners has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Braskem has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Green Plains Partners Company Profile

Green Plains Partners LP provides fuel storage and transportation services. It acquires, owns, develops, and operates ethanol and fuel storage tanks, terminals, transportation assets, and other related assets and businesses. The company owns or leases 39 ethanol storage facilities and approximately 61 acres of land. Green Plains Holdings LLC serves as the general partner of the company. The company was founded in 2015 and is headquartered in Omaha, Nebraska. Green Plains Partners LP is a subsidiary of Green Plains Inc.

Braskem Company Profile

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. Its Basic Petrochemicals segment offers olefins, such as ethylene, polymer and chemical grade propylene, butadiene, and butene-1; BTX products comprising benzene, para-xylene, and toluene; fuels, including automotive gasoline, liquefied petroleum gas, ethyl tertiary butyl ether, and methyl tertiary butyl ether; intermediates, such as cumene; and aliphatics, aromatics, and hydrogenates solvents, as well as specialties, such as isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also supplies electric energy, steam, compressed air, and other products to second-generation producers. Its Polyolefins segment produces polyethylene, including LDPE, LLDPE, HDPE, ultra-high molecular weight polyethylene, and EVA; green polyethylene from renewable resources; and polypropylene. This segment's products are used in plastic films for food and industrial packaging; bottles, shopping bags, and other consumer goods containers; automotive parts; engineering and infra-structure goods; and household appliances. Its Vinyls segment produces polyvinyl chloride, caustic soda, chlorine, hydrogen, caustic soda flake, and sodium hypochlorite. The company's USA and Europe segment produces polypropylene in the United States and Germany. Braskem S.A.'s Mexico segment produces, operates, and sells ethylene, HDPE, and LDPE in Mexico. It also imports and exports chemicals, petrochemicals, and fuels; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.

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



Leave a Reply