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

Valuation and Earnings

This table compares Targa Resources Partners and BP p.l.c.’s top-line revenue, earnings per share (EPS) 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
BP p.l.c. $209.85 billion 0.59 $19.97 billion $1.15 32.89

BP p.l.c. has higher revenue and earnings than Targa Resources Partners.

Profitability

This table compares Targa Resources Partners and BP p.l.c.’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%
BP p.l.c. 1.74% 3.64% 1.34%

Dividends

BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.3%. Targa Resources Partners does not pay a dividend. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BP p.l.c. has raised its dividend for 7 consecutive years.

Insider & Institutional Ownership

10.1% of BP p.l.c. shares are held by institutional investors. 1.0% of BP p.l.c. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Targa Resources Partners and BP p.l.c., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Resources Partners 0 1 2 0 2.67
BP p.l.c. 3 5 13 0 2.48

Targa Resources Partners presently has a consensus target price of $53.00, indicating a potential upside of 397.65%. BP p.l.c. has a consensus target price of $36.58, indicating a potential downside of 3.29%. Given Targa Resources Partners’ stronger consensus rating and higher probable upside, research analysts clearly believe Targa Resources Partners is more favorable than BP p.l.c..

Summary

BP p.l.c. beats Targa Resources Partners on 8 of the 13 factors compared between the two stocks.

Targa Resources Partners Company Profile

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.

BP p.l.c. Company Profile

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

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