Analyzing Mplx (NYSE:MPLX) & SunocoCorp (NYSE:SUNC)

SunocoCorp (NYSE:SUNC) and Mplx (NYSE:MPLX) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SunocoCorp	N/A	N/A	N/A
Mplx	35.75%	32.83%	10.98%

Dividends

SunocoCorp pays an annual dividend of $4.05 per share and has a dividend yield of 5.7%. Mplx pays an annual dividend of $4.84 per share and has a dividend yield of 8.0%. SunocoCorp pays out 140.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mplx pays out 104.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mplx has increased its dividend for 9 consecutive years. Mplx is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

24.2% of Mplx shares are owned by institutional investors. 5.9% of SunocoCorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares SunocoCorp and Mplx”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunocoCorp	$53.96 billion	0.07	-$5.00 million	$2.89	24.64
Mplx	$11.69 billion	5.23	$4.91 billion	$4.65	12.96

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

Analyst Recommendations

This is a summary of recent recommendations for SunocoCorp and Mplx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunocoCorp	1	1	3	1	2.67
Mplx	0	7	6	1	2.57

SunocoCorp presently has a consensus target price of $81.75, indicating a potential upside of 14.80%. Mplx has a consensus target price of $63.80, indicating a potential upside of 5.89%. Given SunocoCorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe SunocoCorp is more favorable than Mplx.

Summary

Mplx beats SunocoCorp on 11 of the 16 factors compared between the two stocks.

About SunocoCorp

Sunoco LP is an energy infrastructure and fuel distribution master limited partnership. Sunoco LP is based in DALLAS.

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.