Targa Resources Partners (NYSE: NGLS) and Sasol (NYSE:SSL) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Dividends

Sasol pays an annual dividend of $1.29 per share and has a dividend yield of 4.3%. Targa Resources Partners does not pay a dividend. Sasol has raised its dividend for 7 consecutive years.

Insider & Institutional Ownership

1.8% of Sasol shares are held by institutional investors. 1.0% of Sasol shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Targa Resources Partners and Sasol, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Resources Partners 0 1 3 0 2.75
Sasol 0 1 3 0 2.75

Targa Resources Partners currently has a consensus price target of $52.75, indicating a potential upside of 395.31%. Given Targa Resources Partners’ higher probable upside, research analysts plainly believe Targa Resources Partners is more favorable than Sasol.

Earnings and Valuation

This table compares Targa Resources Partners and Sasol’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Targa Resources Partners N/A N/A N/A N/A N/A
Sasol $13.17 billion 1.48 $3.88 billion N/A N/A

Sasol has higher revenue and earnings than Targa Resources Partners.

Profitability

This table compares Targa Resources Partners and Sasol’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Targa Resources Partners 3.27% 0.29% 1.61%
Sasol N/A N/A N/A

Summary

Sasol beats Targa Resources Partners on 5 of the 9 factors compared between the two stocks.

About Targa Resources Partners

Targa Resources Partners LP is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States with a presence in crude oil gathering and petroleum terminaling. The Company is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to liquefied petroleum gas (LPG) exporters; gathering, storing and terminaling crude oil, and storing, terminaling and selling refined petroleum products. The Company operates in two divisions: Gathering and Processing, and Logistics and Marketing. The Gathering and Processing division consists of two segments: Field Gathering and Processing, and Coastal Gathering and Processing. The Logistics and Marketing division consists of two segments: Logistics Assets and Marketing and Distribution.

About Sasol

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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