NGL Energy Partners (NYSE: NGL) and Suncor Energy (NYSE:SU) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
This table compares NGL Energy Partners and Suncor Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NGL Energy Partners||-0.97%||-1.85%||-0.57%|
This table compares NGL Energy Partners and Suncor Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NGL Energy Partners||$13.02 billion||0.12||$136.81 million||($1.71)||-7.40|
|Suncor Energy||$25.34 billion||2.23||$3.44 billion||$2.12||16.25|
Suncor Energy has higher revenue and earnings than NGL Energy Partners. NGL Energy Partners is trading at a lower price-to-earnings ratio than Suncor Energy, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NGL Energy Partners has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for NGL Energy Partners and Suncor Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NGL Energy Partners||0||2||2||0||2.50|
NGL Energy Partners presently has a consensus target price of $15.75, suggesting a potential upside of 24.51%. Suncor Energy has a consensus target price of $46.88, suggesting a potential upside of 36.11%. Given Suncor Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Suncor Energy is more favorable than NGL Energy Partners.
Institutional & Insider Ownership
66.8% of NGL Energy Partners shares are owned by institutional investors. Comparatively, 63.8% of Suncor Energy shares are owned by institutional investors. 1.0% of Suncor Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
NGL Energy Partners pays an annual dividend of $1.56 per share and has a dividend yield of 12.3%. Suncor Energy pays an annual dividend of $1.01 per share and has a dividend yield of 2.9%. NGL Energy Partners pays out -91.2% of its earnings in the form of a dividend. Suncor Energy pays out 47.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NGL Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Suncor Energy beats NGL Energy Partners on 14 of the 17 factors compared between the two stocks.
About NGL Energy Partners
NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company’s segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company’s refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.
About Suncor Energy
Suncor Energy Inc is a Canada-based integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. The Company also conducts energy trading activities.
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