Head to Head Review: Mplx (NYSE:MPLX) vs. Suncor Energy (NYSE:SU)

Mplx (NYSE:MPLX) and Suncor Energy (NYSE:SU) are both large-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Volatility and Risk

Mplx has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Profitability

This table compares Mplx and Suncor Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mplx	35.75%	32.83%	10.98%
Suncor Energy	15.62%	20.05%	10.06%

Analyst Ratings

This is a breakdown of current recommendations for Mplx and Suncor Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mplx	0	7	6	1	2.57
Suncor Energy	0	3	7	1	2.82

Mplx currently has a consensus target price of $63.80, indicating a potential upside of 7.25%. Suncor Energy has a consensus target price of $80.25, indicating a potential upside of 15.69%. Given Suncor Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Suncor Energy is more favorable than Mplx.

Dividends

Mplx pays an annual dividend of $4.31 per share and has a dividend yield of 7.2%. Suncor Energy pays an annual dividend of $1.73 per share and has a dividend yield of 2.5%. Mplx pays out 92.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy pays out 31.9% of its earnings in the form of a dividend. Mplx has increased its dividend for 9 consecutive years and Suncor Energy has increased its dividend for 4 consecutive years. Mplx is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Mplx and Suncor Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mplx	$13.00 billion	4.64	$4.91 billion	$4.65	12.79
Suncor Energy	$35.29 billion	2.30	$4.24 billion	$5.43	12.77

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

Insider and Institutional Ownership

24.2% of Mplx shares are held by institutional investors. Comparatively, 67.4% of Suncor Energy shares are held by institutional investors. 1.0% of Suncor Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Mplx beats Suncor Energy on 9 of the 17 factors compared between the two stocks.

About Mplx

MPLX LP engages in the operation of midstream energy infrastructure and logistics assets, and distribution fuels services. It operates through the Crude Oil and Products Logistics and Natural Gas and NGL Services segments. The Crude Oil and Products Logistics segment transports, stores, distributes, and markets crude oil, asphalt, refined petroleum products, and water. The Natural Gas and NGL Services segment gathers, processes, and transports natural gas, and gathers, transports, fractionates, stores, and markets natural gas liquids (NGLs). The company was founded on March 27, 2012 and is headquartered in Findlay, OH.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.