American Midstream Partners, (NYSE: AMID) and BP p.l.c. (NYSE:BP) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Volatility and Risk

American Midstream Partners, has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, BP p.l.c. has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares American Midstream Partners, and BP p.l.c.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Midstream Partners, -10.35% -19.39% -3.16%
BP p.l.c. 1.74% 3.64% 1.34%

Insider & Institutional Ownership

42.2% of American Midstream Partners, shares are owned by institutional investors. Comparatively, 10.1% of BP p.l.c. shares are owned by institutional investors. 5.4% of American Midstream Partners, shares are owned by company insiders. Comparatively, 1.0% of BP p.l.c. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares American Midstream Partners, and BP p.l.c.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Midstream Partners, $296.02 million 2.63 $12.92 million ($1.89) -7.80
BP p.l.c. $209.85 billion 0.60 $19.97 billion $1.15 33.57

BP p.l.c. has higher revenue and earnings than American Midstream Partners,. American Midstream Partners, is trading at a lower price-to-earnings ratio than BP p.l.c., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for American Midstream Partners, and BP p.l.c., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Midstream Partners, 0 1 2 0 2.67
BP p.l.c. 2 6 13 0 2.52

American Midstream Partners, currently has a consensus target price of $16.50, suggesting a potential upside of 11.86%. BP p.l.c. has a consensus target price of $36.58, suggesting a potential downside of 5.27%. Given American Midstream Partners,’s stronger consensus rating and higher possible upside, analysts clearly believe American Midstream Partners, is more favorable than BP p.l.c..

Dividends

American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 11.2%. BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.2%. American Midstream Partners, pays out -87.3% of its earnings in the form of 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. American Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

American Midstream Partners, beats BP p.l.c. on 8 of the 15 factors compared between the two stocks.

American Midstream Partners, Company Profile

American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.

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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