Financial Analysis: Global Partners (GLP) vs. Genesis Energy (GEL)

Global Partners (NYSE: GLP) and Genesis Energy (NYSE:GEL) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Earnings and Valuation

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This table compares Global Partners and Genesis Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Partners $8.92 billion 0.06 $58.35 million $1.74 9.05
Genesis Energy $2.03 billion 1.15 $82.64 million $0.51 37.26

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

Dividends

Global Partners pays an annual dividend of $1.85 per share and has a dividend yield of 11.7%. Genesis Energy pays an annual dividend of $2.04 per share and has a dividend yield of 10.7%. Global Partners pays out 106.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genesis Energy pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

41.5% of Global Partners shares are held by institutional investors. Comparatively, 74.5% of Genesis Energy shares are held by institutional investors. 41.5% of Global Partners shares are held by insiders. Comparatively, 0.7% of Genesis Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Global Partners has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Genesis Energy has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares Global Partners and Genesis Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Partners 0.66% 8.89% 1.57%
Genesis Energy 4.07% 7.14% 2.35%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Global Partners and Genesis Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Partners 0 4 0 0 2.00
Genesis Energy 0 3 3 0 2.50

Global Partners currently has a consensus price target of $18.00, suggesting a potential upside of 14.29%. Genesis Energy has a consensus price target of $31.17, suggesting a potential upside of 64.04%. Given Genesis Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Genesis Energy is more favorable than Global Partners.

Summary

Genesis Energy beats Global Partners on 10 of the 16 factors compared between the two stocks.

About Global Partners

Global Partners LP is a midstream logistics and marketing company. It is engaged in the purchasing, selling, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, natural gas and propane. Its segments include Wholesale, Gasoline Distribution and Station Operations and Commercial. In Wholesale segment, the Company engages in the logistics of selling, gathering, storage and transportation of refined petroleum products, renewable fuels, crude oil and propane. In Gasoline Distribution and Station Operations segment, gasoline distribution includes sales of branded and unbranded gasoline to gasoline station operators and sub-jobbers. The Commercial segment includes sales and deliveries to end user customers in the public sector and to commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil, bunker fuel and natural gas.

About Genesis Energy

Genesis Energy L.P. is a limited partnership focused on the midstream segment of the oil and gas industry. The Company operates through four segments: Offshore Pipeline Transportation, Refinery Services, Marine Transportation, and Supply and Logistics. The Offshore Pipeline Transportation segment is engaged in the offshore transportation of crude oil and natural gas in the Gulf of Mexico. The Refinery Services segment is involved in the processing of high sulfur (or sour) gas streams as part of refining operations to remove the sulfur and selling the related by-product, sodium hydrosulfide (NaHS). The Marine Transportation segment provides waterborne transportation of petroleum products and crude oil throughout North America. The Supply and Logistics segment is engaged in terminaling, blending, storing, marketing, and transporting crude oil and petroleum products (fuel oil, asphalt and other heavy refined products) and carbon dioxide.

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