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

Analyst Recommendations

This is a breakdown of current ratings and price targets for China Petroleum & Chemical Corporation and Ngl Energy Partners Lp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Petroleum & Chemical Corporation 0 1 3 0 2.75
Ngl Energy Partners Lp 0 2 3 0 2.60

Ngl Energy Partners Lp has a consensus price target of $17.80, suggesting a potential upside of 68.72%. Given Ngl Energy Partners Lp’s higher possible upside, analysts plainly believe Ngl Energy Partners Lp is more favorable than China Petroleum & Chemical Corporation.

Dividends

China Petroleum & Chemical Corporation pays an annual dividend of $2.22 per share and has a dividend yield of 2.9%. Ngl Energy Partners Lp pays an annual dividend of $1.56 per share and has a dividend yield of 14.8%. China Petroleum & Chemical Corporation pays out 33.8% of its earnings in the form of a dividend. Ngl Energy Partners Lp pays out -124.8% 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. Ngl Energy Partners Lp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

0.8% of China Petroleum & Chemical Corporation shares are held by institutional investors. Comparatively, 70.2% of Ngl Energy Partners Lp shares are held by institutional investors. 92.2% of China Petroleum & Chemical Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

China Petroleum & Chemical Corporation has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Ngl Energy Partners Lp has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares China Petroleum & Chemical Corporation and Ngl Energy Partners Lp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Petroleum & Chemical Corporation $332.03 billion 0.28 $28.88 billion $6.56 11.59
Ngl Energy Partners Lp $14.08 billion 0.09 $282.16 million ($1.25) -8.44

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

Profitability

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

Net Margins Return on Equity Return on Assets
China Petroleum & Chemical Corporation N/A 4.47% 2.54%
Ngl Energy Partners Lp -0.73% -5.00% -1.62%

Summary

China Petroleum & Chemical Corporation beats Ngl Energy Partners Lp on 10 of the 14 factors compared between the two stocks.

China Petroleum & Chemical Corporation Company Profile

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.

Ngl Energy Partners Lp Company Profile

NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company’s segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company’s refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.

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