Arc Logistic Partners (NYSE: ARCX) and China Petroleum & Chemical Corporation (NYSE:SNP) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Earnings & Valuation

This table compares Arc Logistic Partners and China Petroleum & Chemical Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Arc Logistic Partners $105.58 million 3.08 $53.34 million $0.71 23.41
China Petroleum & Chemical Corporation $332.03 billion 0.29 $28.88 billion $6.56 11.94

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

Dividends

Arc Logistic Partners pays an annual dividend of $1.76 per share and has a dividend yield of 10.6%. China Petroleum & Chemical Corporation pays an annual dividend of $3.28 per share and has a dividend yield of 4.2%. Arc Logistic Partners pays out 247.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Petroleum & Chemical Corporation pays out 50.0% of its earnings in the form of a dividend. China Petroleum & Chemical Corporation has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Arc Logistic Partners and China Petroleum & Chemical Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arc Logistic Partners 0 3 1 0 2.25
China Petroleum & Chemical Corporation 0 1 3 0 2.75

Arc Logistic Partners presently has a consensus target price of $18.33, suggesting a potential upside of 10.31%. Given Arc Logistic Partners’ higher probable upside, equities analysts plainly believe Arc Logistic Partners is more favorable than China Petroleum & Chemical Corporation.

Profitability

This table compares Arc Logistic Partners and China Petroleum & Chemical Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arc Logistic Partners 13.28% 4.10% 2.31%
China Petroleum & Chemical Corporation N/A 4.47% 2.54%

Institutional & Insider Ownership

40.6% of Arc Logistic Partners shares are owned by institutional investors. Comparatively, 0.8% of China Petroleum & Chemical Corporation shares are owned by institutional investors. 92.2% of China Petroleum & Chemical Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Arc Logistic Partners has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, China Petroleum & Chemical Corporation has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Summary

China Petroleum & Chemical Corporation beats Arc Logistic Partners on 11 of the 17 factors compared between the two stocks.

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.

About China Petroleum & Chemical Corporation

China Petroleum & Chemical Corporation is a China-based energy and chemical company. The Company’s segments include Exploration and Development segment, Refining segment, Marketing and Distribution segment, Chemicals segment, and Corporate and Others segment. Exploration and Development segment explores and develops oil fields, as well as produces crude oil and natural gas. Refining segment processes and purifies crude oil, which is sourced from Exploration and Development segment and external suppliers. Marketing and Distribution segment owns and operates oil depots and service stations in China. Chemical segment manufactures and sells petrochemical products, derivative petrochemical products and other chemical products to external customers.

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