Critical Analysis: SunCoke Energy Partners, L.P. (SXCP) & L.B. Foster (FSTR)
SunCoke Energy Partners, L.P. (NYSE: SXCP) and L.B. Foster (NASDAQ:FSTR) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Earnings and Valuation
This table compares SunCoke Energy Partners, L.P. and L.B. Foster’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SunCoke Energy Partners, L.P.||$800.00 million||0.99||$218.50 million||($1.87)||-9.14|
|L.B. Foster||$484.77 million||0.51||$23.17 million||($4.49)||-5.31|
SunCoke Energy Partners, L.P. has higher revenue and earnings than L.B. Foster. SunCoke Energy Partners, L.P. is trading at a lower price-to-earnings ratio than L.B. Foster, indicating that it is currently the more affordable of the two stocks.
SunCoke Energy Partners, L.P. pays an annual dividend of $2.38 per share and has a dividend yield of 13.9%. L.B. Foster does not pay a dividend. SunCoke Energy Partners, L.P. pays out -127.3% of its earnings in the form of a dividend.
This table compares SunCoke Energy Partners, L.P. and L.B. Foster’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SunCoke Energy Partners, L.P.||-9.52%||14.02%||5.44%|
Risk & Volatility
SunCoke Energy Partners, L.P. has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, L.B. Foster has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for SunCoke Energy Partners, L.P. and L.B. Foster, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SunCoke Energy Partners, L.P.||0||0||1||0||3.00|
SunCoke Energy Partners, L.P. presently has a consensus price target of $19.00, indicating a potential upside of 11.11%. Given SunCoke Energy Partners, L.P.’s higher probable upside, equities analysts plainly believe SunCoke Energy Partners, L.P. is more favorable than L.B. Foster.
Insider & Institutional Ownership
15.7% of SunCoke Energy Partners, L.P. shares are owned by institutional investors. Comparatively, 71.1% of L.B. Foster shares are owned by institutional investors. 15.2% of L.B. Foster shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
SunCoke Energy Partners, L.P. beats L.B. Foster on 11 of the 14 factors compared between the two stocks.
About SunCoke Energy Partners, L.P.
SunCoke Energy Partners, L.P. is engaged in the production of coke used in the blast furnace production of steel. As of December 31, 2016, the Company owned a 98% interest in Haverhill Coke Company LLC (Haverhill), Middletown Coke Company, LLC (Middletown), and Gateway Energy and Coke Company, LLC (Granite City). The Company’s segments include Domestic Coke, which consists of the Haverhill, Middletown and Granite City cokemaking and heat recovery operations located in Franklin Furnace, Ohio; Middletown, Ohio, and Granite City, Illinois, respectively, and Coal Logistics, which consists of the Company’s Convent Marine Terminal, Kanawha River Terminals, LLC and SunCoke Lake Terminal, LLC (Lake Terminal) coal handling and/or mixing service operations in Convent, Louisiana; Ceredo and Belle, West Virginia, and East Chicago, Indiana, respectively. It also provides coal handling and/or mixing services at its Coal Logistics terminals to steel, coke, electric utility and coal mining customers.
About L.B. Foster
L.B. Foster Company is a manufacturer, fabricator and distributor of products and services for the rail, construction, energy and utility markets. The Company’s segments include Rail Products and Services, Construction Products, and Tubular and Energy Services. Its Rail Products segment provides a range of new and used rail, trackwork and accessories to railroads, mines and industry. The Rail segment designs and produces concrete railroad ties, insulated rail joints, power rail, track fasteners, coverboards and special accessories for mass transit and other rail systems. The Construction Products segment sells and rents steel sheet piling, H-bearing pile and other piling products for foundation and earth retention requirements. The Tubular and Energy Services segment supplies pipe coatings for natural gas pipelines and utilities, blending, injection and metering equipment for the oil and gas market, and produces threaded pipe products for industrial water well and irrigation markets.
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