Global Partners (GLP) versus World Fuel Services Corporation (INT) Head-To-Head Analysis
Global Partners (NYSE: GLP) and World Fuel Services Corporation (NYSE:INT) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitabiliy and earnings.
Risk & Volatility
Global Partners has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, World Fuel Services Corporation has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
This table compares Global Partners and World Fuel Services Corporation’s 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%|
Global Partners pays an annual dividend of $1.85 per share and has a dividend yield of 10.2%. World Fuel Services Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Global Partners pays out -36.9% of its earnings in the form of a dividend. World Fuel Services Corporation pays out 15.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. World Fuel Services Corporation has increased its dividend for 2 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings for Global Partners and World Fuel Services Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|World Fuel Services Corporation||0||0||1||0||3.00|
Global Partners presently has a consensus price target of $18.25, suggesting a potential upside of 0.83%. World Fuel Services Corporation has a consensus price target of $48.00, suggesting a potential upside of 39.82%. Given World Fuel Services Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe World Fuel Services Corporation is more favorable than Global Partners.
Institutional and Insider Ownership
47.3% of Global Partners shares are held by institutional investors. Comparatively, 91.2% of World Fuel Services Corporation shares are held by institutional investors. 41.5% of Global Partners shares are held by insiders. Comparatively, 2.3% of World Fuel Services Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Global Partners and World Fuel Services Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Global Partners||$8.76 billion||0.07||$224.50 million||($5.02)||-3.61|
|World Fuel Services Corporation||$31.47 billion||0.07||$259.20 million||$1.53||22.44|
World Fuel Services Corporation has higher revenue and earnings than Global Partners. Global Partners is trading at a lower price-to-earnings ratio than World Fuel Services Corporation, indicating that it is currently the more affordable of the two stocks.
World Fuel Services Corporation beats Global Partners on 11 of the 15 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 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.
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