Crestwood Equity Partners (NYSE: CEQP) and Suncor Energy (NYSE:SU) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Crestwood Equity Partners and Suncor Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crestwood Equity Partners -4.68% -1.13% -0.49%
Suncor Energy 6.00% 3.86% 1.99%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Crestwood Equity Partners and Suncor Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crestwood Equity Partners 0 0 4 0 3.00
Suncor Energy 0 3 13 1 2.88

Crestwood Equity Partners currently has a consensus target price of $28.00, indicating a potential upside of 12.22%. Suncor Energy has a consensus target price of $43.75, indicating a potential upside of 28.19%. Given Suncor Energy’s higher probable upside, analysts plainly believe Suncor Energy is more favorable than Crestwood Equity Partners.

Valuation and Earnings

This table compares Crestwood Equity Partners and Suncor Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Crestwood Equity Partners $3.06 billion 0.57 $311.60 million ($2.24) -11.14
Suncor Energy $24.22 billion 2.34 $7.37 billion $1.22 27.98

Suncor Energy has higher revenue and earnings than Crestwood Equity Partners. Crestwood Equity Partners is trading at a lower price-to-earnings ratio than Suncor Energy, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Crestwood Equity Partners has a beta of 2.61, meaning that its share price is 161% more volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Dividends

Crestwood Equity Partners pays an annual dividend of $2.40 per share and has a dividend yield of 9.6%. Suncor Energy pays an annual dividend of $1.03 per share and has a dividend yield of 3.0%. Crestwood Equity Partners pays out -107.1% of its earnings in the form of a dividend. Suncor Energy pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crestwood Equity Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

65.2% of Crestwood Equity Partners shares are owned by institutional investors. Comparatively, 64.1% of Suncor Energy shares are owned by institutional investors. 36.2% of Crestwood Equity Partners shares are owned by insiders. Comparatively, 1.0% of Suncor Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Suncor Energy beats Crestwood Equity Partners on 10 of the 16 factors compared between the two stocks.

Crestwood Equity Partners Company Profile

Crestwood Equity Partners LP is a holding company and a master limited partnership (MLP). The Company develops, acquires, owns or controls, and operates assets and operations within the energy midstream sector. The Company’s segments include gathering and processing (G&P), which includes its natural gas, crude oil and produced water G&P operations; storage and transportation, which includes its natural gas and crude oil storage and transportation operations, and marketing, supply and logistics, which includes its natural gas liquid (NGL) supply and logistics business, crude oil storage and rail loading facilities and fleet, and salt production business. The Company provides infrastructure solutions to service natural gas and crude oil shale plays across the United States. It owns and operates a portfolio of crude oil and natural gas gathering, processing, storage and transportation assets. Its operating assets are owned by or through its subsidiary, Crestwood Midstream Partners LP.

Suncor Energy Company Profile

Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.

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