Analyzing Midcoast Energy Partners (MEP) & Sasol (SSL)
Midcoast Energy Partners (NYSE: MEP) and Sasol (NYSE:SSL) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.
Insider and Institutional Ownership
64.7% of Midcoast Energy Partners shares are held by institutional investors. Comparatively, 1.8% of Sasol shares are held by institutional investors. 1.0% of Sasol shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Midcoast Energy Partners has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500. Comparatively, Sasol has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Valuation and Earnings
This table compares Midcoast Energy Partners and Sasol’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Midcoast Energy Partners||N/A||N/A||N/A||($1.76)||-4.52|
|Sasol||$13.17 billion||1.49||$3.88 billion||N/A||N/A|
Sasol has higher revenue and earnings than Midcoast Energy Partners.
This table compares Midcoast Energy Partners and Sasol’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Midcoast Energy Partners||-5.25%||-34.51%||-2.64%|
Midcoast Energy Partners pays an annual dividend of $1.43 per share and has a dividend yield of 18.0%. Sasol pays an annual dividend of $1.29 per share and has a dividend yield of 4.2%. Midcoast Energy Partners pays out -81.2% of its earnings in the form of a dividend. Sasol has raised its dividend for 2 consecutive years.
This is a summary of current recommendations and price targets for Midcoast Energy Partners and Sasol, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Midcoast Energy Partners||0||1||0||0||2.00|
Midcoast Energy Partners currently has a consensus price target of $8.00, suggesting a potential upside of 0.63%. Given Midcoast Energy Partners’ higher probable upside, equities analysts clearly believe Midcoast Energy Partners is more favorable than Sasol.
Sasol beats Midcoast Energy Partners on 8 of the 13 factors compared between the two stocks.
Midcoast Energy Partners Company Profile
Midcoast Energy Partners, L.P. (MEP) is a limited partnership company that is engaged in the natural gas and natural gas liquids (NGL) midstream business. It operates through two segments: Gathering, Processing and Transportation, and Logistics and Marketing. It also provides marketing services of natural gas and NGLs to wholesale customers. The Company’s gathering, processing and transportation business includes natural gas and NGL gathering and transportation pipeline systems, natural gas processing and treating facilities, condensate stabilizers and an NGL fractionation facility. Its logistics and marketing business provides marketing services of natural gas, NGLs and condensate received from its gathering, processing and transportation business. The Company holds interest in Midcoast Operating, L.P., a Texas limited partnership that owns a network of natural gas and NGL gathering and transportation systems, natural gas processing and treating facilities.
Sasol Company Profile
Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.
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