VTTI Energy Partners (NYSE: VTTI) and World Point Terminals (NYSE:WPT) are both small-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
VTTI Energy Partners has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, World Point Terminals has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
74.5% of VTTI Energy Partners shares are held by institutional investors. Comparatively, 13.2% of World Point Terminals shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. 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. World Point Terminals pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. World Point Terminals has raised its dividend for 3 consecutive years. World Point Terminals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares VTTI Energy Partners and World Point Terminals’ revenue, earnings per share 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|
|World Point Terminals||N/A||N/A||N/A||$1.04||16.63|
World Point Terminals 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.
This is a breakdown of recent ratings for VTTI Energy Partners and World Point Terminals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VTTI Energy Partners||0||2||0||0||2.00|
|World Point Terminals||0||2||0||0||2.00|
VTTI Energy Partners presently has a consensus target price of $19.50, indicating a potential upside of 0.00%. World Point Terminals has a consensus target price of $17.00, indicating a potential downside of 1.68%. Given VTTI Energy Partners’ higher possible upside, analysts clearly believe VTTI Energy Partners is more favorable than World Point Terminals.
This table compares VTTI Energy Partners and World Point Terminals’ 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%|
|World Point Terminals||37.15%||19.57%||18.37%|
World Point Terminals beats VTTI Energy Partners on 7 of the 11 factors compared between the two stocks.
About VTTI Energy Partners
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.
About World Point Terminals
World Point Terminals, LP owns, operates, develops and acquires liquid bulk storage terminals and other assets relating to the storage of petroleum products, including light refined products, heavy refined products and crude oil. The Company operates fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States. As of December 31, 2016, through its subsidiary, Center Point Terminal Company, LLC (Center Point), the Company owned and operated 15.6 million barrels of tankage at terminals, which are located in the East Coast, Gulf Coast and Midwest regions of the United States. The Company’s terminal facilities are located on waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with loading logistics. Its terminal facilities also have rail or pipeline access.
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