Critical Comparison: Green Plains Partners (GPP) & Ceres (CERE)
Green Plains Partners (NASDAQ: GPP) and Ceres (NASDAQ:CERE) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitabiliy, dividends, valuation, analyst recommendations and earnings.
Insider & Institutional Ownership
54.6% of Green Plains Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Green Plains Partners and Ceres’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Green Plains Partners||$107.21 million||5.90||$68.92 million||$1.83||10.87|
Green Plains Partners has higher revenue and earnings than Ceres. Ceres is trading at a lower price-to-earnings ratio than Green Plains Partners, indicating that it is currently the more affordable of the two stocks.
Green Plains Partners pays an annual dividend of $1.76 per share and has a dividend yield of 8.8%. Ceres does not pay a dividend. Green Plains Partners pays out 96.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Green Plains Partners and Ceres’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Green Plains Partners||55.59%||-129.01%||67.20%|
This is a breakdown of recent ratings and price targets for Green Plains Partners and Ceres, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Green Plains Partners||0||0||5||0||3.00|
Green Plains Partners presently has a consensus price target of $21.38, suggesting a potential upside of 7.41%. Given Green Plains Partners’ higher possible upside, research analysts plainly believe Green Plains Partners is more favorable than Ceres.
Risk & Volatility
Green Plains Partners has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Ceres has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.
Green Plains Partners beats Ceres on 9 of the 11 factors compared between the two stocks.
Green Plains Partners Company Profile
Green Plains Partners LP provides fuel storage and transportation services. The Company owns, operates, develops and acquires ethanol and fuel storage facilities, terminals, transportation assets, and other related assets and businesses. The Company’s parent company is Green Plains Inc. (Green Plains). The Company was formed by Green Plains, a vertically integrated ethanol producer, to support its marketing and distribution activities as its primary downstream logistics provider. The Company’s ethanol storage assets are the principal method of storing ethanol produced at its parent’s ethanol production plants. Ethanol can be distributed from its storage facilities to bulk terminals through truck, railcar or barge. As of December 31, 2016, the Company owned or leased 39 ethanol storage facilities and approximately 56 acres of land. As of December 31, 2016, its storage tanks were located at or near its parent’s 17 ethanol production plants in Indiana and Illinois, among others
Ceres Company Profile
Ceres, Inc. is an agricultural biotechnology company that develops and markets seeds and traits to produce crops for feed, forages, sugar and other markets. The Company uses a combination of plant breeding, biotechnology and bioinformatics to develop seed products and biotechnology traits. Its Forage sorghum seeds are used for growing feed for livestock, including dairy and beef cattle. Its technology platforms have application across various end markets, including food, feed, fiber and fuel. It has developed bioinformatics software, Persephone, to deal with the data generated in plant genomics. Its Persephone enables storage and access to datasets, as well as data visualizations to view genetic data from public sources and databases. It markets its seed products under the name Blade. Its customers include dairies and livestock producers, agri-industrial facilities, individual growers and grower cooperatives. It deploys a range of research and development methods and tools.
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