Andeavor (NYSE: ANDV) and Targa Resources Partners (NYSE:NGLS) are both mid-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Institutional & Insider Ownership
78.9% of Andeavor shares are held by institutional investors. 0.9% of Andeavor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Andeavor and Targa Resources Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Targa Resources Partners||3.27%||0.29%||1.61%|
Andeavor pays an annual dividend of $2.36 per share and has a dividend yield of 2.0%. Targa Resources Partners pays an annual dividend of $3.30 per share and has a dividend yield of 31.0%. Andeavor pays out 48.4% of its earnings in the form of a dividend. Targa Resources Partners pays out 423.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Andeavor has increased its dividend for 8 consecutive years.
Valuation & Earnings
This table compares Andeavor and Targa Resources Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Andeavor||$24.58 billion||0.75||$734.00 million||$4.88||24.25|
|Targa Resources Partners||N/A||N/A||N/A||$0.78||13.65|
Andeavor has higher revenue and earnings than Targa Resources Partners. Targa Resources Partners is trading at a lower price-to-earnings ratio than Andeavor, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Andeavor and Targa Resources Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Targa Resources Partners||0||0||0||0||N/A|
Andeavor currently has a consensus price target of $121.35, indicating a potential upside of 2.54%. Given Andeavor’s higher possible upside, equities analysts plainly believe Andeavor is more favorable than Targa Resources Partners.
Andeavor beats Targa Resources Partners on 11 of the 13 factors compared between the two stocks.
Andeavor Company Profile
Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.
Targa Resources Partners Company Profile
Targa Resources Partners LP is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States with a presence in crude oil gathering and petroleum terminaling. The Company is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to liquefied petroleum gas (LPG) exporters; gathering, storing and terminaling crude oil, and storing, terminaling and selling refined petroleum products. The Company operates in two divisions: Gathering and Processing, and Logistics and Marketing. The Gathering and Processing division consists of two segments: Field Gathering and Processing, and Coastal Gathering and Processing. The Logistics and Marketing division consists of two segments: Logistics Assets and Marketing and Distribution.
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