Alon USA Partners, (NYSE: ALDW) and Arc Logistic Partners (NYSE:ARCX) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitabiliy.

Volatility and Risk

Alon USA Partners, has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Arc Logistic Partners has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Insider and Institutional Ownership

6.7% of Alon USA Partners, shares are held by institutional investors. Comparatively, 43.3% of Arc Logistic Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Alon USA Partners, and Arc Logistic Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alon USA Partners, 1.22% 21.53% 3.20%
Arc Logistic Partners 14.48% 4.38% 2.48%

Dividends

Alon USA Partners, pays an annual dividend of $1.52 per share and has a dividend yield of 13.6%. Arc Logistic Partners pays an annual dividend of $1.76 per share and has a dividend yield of 11.4%. Alon USA Partners, 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. Arc Logistic Partners pays out 225.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alon USA Partners, has increased its dividend for 2 consecutive years and Arc Logistic Partners has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Alon USA Partners, and Arc Logistic Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alon USA Partners, 0 2 3 0 2.60
Arc Logistic Partners 0 2 1 0 2.33

Alon USA Partners, currently has a consensus price target of $12.50, indicating a potential upside of 11.71%. Arc Logistic Partners has a consensus price target of $18.00, indicating a potential upside of 16.13%. Given Arc Logistic Partners’ higher probable upside, analysts plainly believe Arc Logistic Partners is more favorable than Alon USA Partners,.

Earnings & Valuation

This table compares Alon USA Partners, and Arc Logistic Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alon USA Partners, $1.98 billion 0.35 $116.41 million $0.38 29.45
Arc Logistic Partners $105.24 million 2.87 $53.31 million $0.78 19.87

Alon USA Partners, has higher revenue and earnings than Arc Logistic Partners. Arc Logistic Partners is trading at a lower price-to-earnings ratio than Alon USA Partners,, indicating that it is currently the more affordable of the two stocks.

Summary

Alon USA Partners, beats Arc Logistic Partners on 9 of the 15 factors compared between the two stocks.

About Alon USA Partners,

Alon USA Partners, LP (Alon) is engaged principally in the business of operating a crude oil refinery in Big Spring, Texas. The Company had a crude oil throughput capacity of 73,000 barrels per day, which the Company referred to as its Big Spring refinery, as of December 31, 2016. The Company refines crude oil into finished products, which the Company markets primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to retail convenience stores and other third-party distributors. Its Big Spring refinery is located on 1,306 acres in the Permian Basin in West Texas. Major processes at its Big Spring refinery include fluid catalytic cracking, naphtha reforming, vacuum distillation, hydrotreating, aromatic extraction and alkylation. The Company is managed and operated by Alon USA Partners GP, LLC (General Partner), an indirect subsidiary of Alon USA Energy, Inc. (Alon Energy), which is its parent company.

About Arc Logistic Partners

Arc Logistics Partners LP owns, operates, develops and acquires a portfolio of energy logistics assets. The Company is engaged in the terminaling, storage, throughput and transloading of crude oil and petroleum products. The Company is focused on growing its business through the optimization, organic development and acquisition of terminaling, storage, rail, pipeline and other energy logistics assets. As of March 6, 2017, the Company’s energy logistics assets were located in the East Coast, Gulf Coast, Midwest, Rocky Mountains and West Coast regions of the United States and supplied a group of third-party customers, including oil companies, independent refiners, crude oil and petroleum product marketers, distributors and various industrial manufacturers. As of December 31, 2016, its assets consisted of 21 terminals in 12 states; four rail transloading facilities, and the liquefied natural gas (LNG) Interest in connection with the LNG Facility.

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