Critical Analysis: World Fuel Services Corporation (NYSE:INT) & CrossAmerica Partners (CAPL)
World Fuel Services Corporation (NYSE: INT) and CrossAmerica Partners (NYSE:CAPL) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitabiliy, valuation, dividends, earnings and risk.
This table compares World Fuel Services Corporation and CrossAmerica Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|World Fuel Services Corporation||0.34%||5.60%||2.09%|
Risk & Volatility
World Fuel Services Corporation has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, CrossAmerica Partners has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for World Fuel Services Corporation and CrossAmerica Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|World Fuel Services Corporation||0||0||1||0||3.00|
World Fuel Services Corporation presently has a consensus target price of $48.00, suggesting a potential upside of 40.97%. CrossAmerica Partners has a consensus target price of $30.40, suggesting a potential upside of 15.90%. Given World Fuel Services Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe World Fuel Services Corporation is more favorable than CrossAmerica Partners.
Earnings & Valuation
This table compares World Fuel Services Corporation and CrossAmerica Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|World Fuel Services Corporation||$31.47 billion||0.07||$259.20 million||$1.53||22.26|
|CrossAmerica Partners||$1.89 billion||0.47||$72.56 million||$0.20||131.16|
World Fuel Services Corporation has higher revenue and earnings than CrossAmerica Partners. World Fuel Services Corporation is trading at a lower price-to-earnings ratio than CrossAmerica Partners, indicating that it is currently the more affordable of the two stocks.
World Fuel Services Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. CrossAmerica Partners pays an annual dividend of $2.49 per share and has a dividend yield of 9.5%. World Fuel Services Corporation pays out 15.7% of its earnings in the form of a dividend. CrossAmerica Partners pays out 1,245.1% 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 Fuel Services Corporation has raised its dividend for 2 consecutive years.
Insider & Institutional Ownership
90.6% of World Fuel Services Corporation shares are owned by institutional investors. Comparatively, 37.1% of CrossAmerica Partners shares are owned by institutional investors. 2.3% of World Fuel Services Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
World Fuel Services Corporation beats CrossAmerica Partners on 11 of the 17 factors compared between the two stocks.
About World Fuel Services Corporation
World Fuel Services Corporation is engaged in providing aviation, marine and land energy, logistics and technology solutions to customers and suppliers around the world. The Company operates through three segments: Aviation, Marine and Land. In its Aviation segment, the Company offers fuel and related products and services. In its land segment, it offers fuel, crude oil, lubricants, power solutions through its global energy management service offerings, natural gas and related products and services to customers. Under marine segment, it offers fuel, lubricants and related products and services to customers, including international container and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the United States and foreign Governments, as well as other fuel suppliers. It offers solutions, such as oil and energy procurement, distribution and storage, financial solutions and consulting services.
About CrossAmerica Partners
CrossAmerica Partners LP is a limited partnership engaged in the wholesale distribution of motor fuel, and the ownership and leasing of real estate used in the retail distribution of motor fuel. The Company operates in two segments: wholesale and retail. The wholesale segment is engaged in the wholesale distribution of motor fuel to lessee dealers, independent dealers, commission agents, Dunne Manning Stores LLC (DMS), CST Brands, Inc. and subsidiaries (CST) and company operated retail sites. The Retail segment owns or leases and operates retail sites. As of December 31, 2016, it distributed motor fuels to approximately 1,200 sites located in 29 states (Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Virginia, West Virginia and Wisconsin).
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