VTTI Energy Partners (NYSE: VTTI) and Tallgrass Energy Partners (NYSE:TEP) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
This table compares VTTI Energy Partners and Tallgrass Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VTTI Energy Partners||35.11%||8.09%||7.61%|
|Tallgrass Energy Partners||66.17%||28.25%||11.21%|
This is a summary of current ratings and recommmendations for VTTI Energy Partners and Tallgrass Energy Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VTTI Energy Partners||0||3||0||0||2.00|
|Tallgrass Energy Partners||0||4||7||0||2.64|
VTTI Energy Partners currently has a consensus price target of $19.50, indicating a potential upside of 0.00%. Tallgrass Energy Partners has a consensus price target of $51.13, indicating a potential upside of 29.89%. Given Tallgrass Energy Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Tallgrass Energy Partners is more favorable than VTTI Energy Partners.
VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Tallgrass Energy Partners pays an annual dividend of $3.86 per share and has a dividend yield of 9.8%. VTTI Energy Partners pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tallgrass Energy Partners pays out 99.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VTTI Energy Partners has increased its dividend for 3 consecutive years and Tallgrass Energy Partners has increased its dividend for 4 consecutive years. Tallgrass Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
VTTI Energy Partners has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Tallgrass Energy Partners has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Valuation & Earnings
This table compares VTTI Energy Partners and Tallgrass Energy Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VTTI Energy Partners||N/A||N/A||N/A||$0.81||24.07|
|Tallgrass Energy Partners||$655.90 million||4.39||$433.99 million||$3.90||10.09|
Tallgrass Energy Partners has higher revenue and earnings than VTTI Energy Partners. Tallgrass Energy Partners is trading at a lower price-to-earnings ratio than VTTI Energy Partners, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
74.5% of VTTI Energy Partners shares are owned by institutional investors. Comparatively, 62.1% of Tallgrass Energy Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Tallgrass Energy Partners beats VTTI Energy Partners on 11 of the 14 factors compared between the two stocks.
VTTI Energy Partners Company Profile
VTTI Energy Partners LP provides terminaling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. The Company operates through the segment of energy storage terminaling business. Its assets consist of approximately 42.6% interest in VTTI MLP B.V., which owns a portfolio of over six terminals with over 400 tanks and approximately 35.7 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America. Its terminals are located in international supply and demand centers for refined petroleum products and crude oil and provide midstream infrastructure services to its customers at these international market hubs. It provides storage and terminaling services for energy industry participants, including marketing companies, integrated oil companies, national oil companies, distributors, and chemical and petrochemical companies.
Tallgrass Energy Partners Company Profile
Tallgrass Energy Partners, LP owns, operates, acquires and develops midstream energy assets in North America. The Company operates through three segments: Crude Oil Transportation & Logistics, Natural Gas Transportation & Logistics and Processing & Logistics. The Crude Oil Transportation & Logistics segment includes the ownership and operation of a Federal Energy Regulatory Commission (FERC) crude oil pipeline system, and crude oil storage and terminaling facilities. The Natural Gas Transportation & Logistics segment is engaged in the ownership and operation of FERC regulated interstate natural gas pipelines and integrated natural gas storage facilities. The Processing & Logistics segment is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities; the provision of water business services primarily to the oil and gas exploration and production industry, and the transportation of natural gas liquids (NGLs).
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