Michael Baker Corp (NYSE: BKR) and USD Partners (NYSE:USDP) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Michael Baker Corp and USD Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Michael Baker Corp N/A N/A N/A N/A N/A
USD Partners $110.04 million 2.60 $55.88 million $1.23 8.82

USD Partners has higher revenue and earnings than Michael Baker Corp.

Dividends

USD Partners pays an annual dividend of $1.36 per share and has a dividend yield of 12.5%. Michael Baker Corp does not pay a dividend. USD Partners pays out 110.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. USD Partners has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Michael Baker Corp and USD Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Michael Baker Corp 0 0 0 0 N/A
USD Partners 1 1 2 0 2.25

USD Partners has a consensus price target of $16.00, suggesting a potential upside of 47.47%. Given USD Partners’ higher probable upside, analysts clearly believe USD Partners is more favorable than Michael Baker Corp.

Institutional & Insider Ownership

40.2% of USD Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Michael Baker Corp and USD Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Michael Baker Corp N/A N/A N/A
USD Partners 21.37% 42.91% 7.72%

Summary

USD Partners beats Michael Baker Corp on 9 of the 10 factors compared between the two stocks.

About Michael Baker Corp

Michael Baker Corporation (Baker), through its operating subsidiaries, is engaged in providing engineering services for public and private sector clients worldwide. The Company’s business is principally in the United States of America. The Company’s operates in two segments: Transportation and Federal. The Transportation segment provides services for surface transportation, aviation and rail and transit markets. The Company also partners with construction contractors to pursue selected design-build contracts. In October 2013, the Company and Integrated Mission Solutions, LLC (IMS), an affiliate of DC Capital Partners, LLC, announced the merger of IMS’s wholly owned subsidiary, CDL Acquisition Co. Inc. (Merger Sub), with and into Baker. In connection with the merger, IMS is changing its name to Michael Baker International, LLC (Michael Baker International). As a result of the merger, Baker is a wholly owned subsidiary of Michael Baker International.

About USD Partners

USD Partners LP acquires, develops and operates energy-related logistics assets, including rail terminals and other midstream infrastructure. The Company’s segments include Terminalling services and Fleet services. The Terminalling services segment consists of various operations, including Hardisty terminal, Casper terminal and Ethanol terminals. Its Hardisty terminal is an origination terminal where it loads various grades of Canadian crude oil onto railcars for transportation to end markets. The Casper terminal is a crude oil storage, blending and railcar loading terminal located in Casper, Wyoming. Its San Antonio and West Colton terminals are unit train-capable destination terminals that transload ethanol received by rail from producers onto trucks to meet local ethanol demand. The Company provides its customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under master fleet services agreements.

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