Global Partners (NYSE:GLP – Get Free Report) and Hess Midstream Partners (NYSE:HESM – Get Free Report) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Dividends
Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 6.0%. Hess Midstream Partners pays an annual dividend of $3.16 per share and has a dividend yield of 7.8%. Global Partners pays out 63.5% of its earnings in the form of a dividend. Hess Midstream Partners pays out 109.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Partners has increased its dividend for 5 consecutive years and Hess Midstream Partners has increased its dividend for 8 consecutive years. Hess Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Global Partners and Hess Midstream Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Partners | 0 | 2 | 1 | 0 | 2.33 |
| Hess Midstream Partners | 2 | 4 | 1 | 0 | 1.86 |
Volatility & Risk
Global Partners has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Hess Midstream Partners has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
Profitability
This table compares Global Partners and Hess Midstream Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Partners | 0.91% | 30.87% | 4.92% |
| Hess Midstream Partners | 23.23% | 92.18% | 8.62% |
Valuation & Earnings
This table compares Global Partners and Hess Midstream Partners”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Partners | $18.56 billion | 0.10 | $79.22 million | $4.91 | 10.58 |
| Hess Midstream Partners | $1.62 billion | 5.12 | $352.90 million | $2.90 | 13.89 |
Hess Midstream Partners has lower revenue, but higher earnings than Global Partners. Global Partners is trading at a lower price-to-earnings ratio than Hess Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
38.1% of Global Partners shares are owned by institutional investors. Comparatively, 99.0% of Hess Midstream Partners shares are owned by institutional investors. 41.5% of Global Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Hess Midstream Partners beats Global Partners on 10 of the 16 factors compared between the two stocks.
About Global Partners
Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.
About Hess Midstream Partners
Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,410 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 660 million cubic feet per day; crude oil gathering system comprises approximately 570 miles of crude oil gathering pipelines; and produced water gathering system that includes approximately 300 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; crude oil rail cars; and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.
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