Valero Energy Partners (VLP) versus The Competition Critical Review
Valero Energy Partners (NYSE: VLP) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it compare to its competitors? We will compare Valero Energy Partners to related businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
29.9% of Valero Energy Partners shares are held by institutional investors. Comparatively, 57.2% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Valero Energy Partners has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Valero Energy Partners’ competitors have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.
Valero Energy Partners pays an annual dividend of $1.82 per share and has a dividend yield of 4.1%. Valero Energy Partners pays out 61.7% of its earnings in the form of a dividend. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.4% and pay out 172.0% of their earnings in the form of a dividend. Valero Energy Partners has increased its dividend for 2 consecutive years.
This is a breakdown of current recommendations and price targets for Valero Energy Partners and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valero Energy Partners||0||1||6||0||2.86|
|Valero Energy Partners Competitors||270||1735||2327||84||2.50|
Valero Energy Partners presently has a consensus price target of $53.43, suggesting a potential upside of 21.59%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 17.32%. Given Valero Energy Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Valero Energy Partners is more favorable than its competitors.
This table compares Valero Energy Partners and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Valero Energy Partners||55.29%||266.53%||22.74%|
|Valero Energy Partners Competitors||17.34%||14.24%||5.50%|
Earnings and Valuation
This table compares Valero Energy Partners and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Valero Energy Partners||$412.55 million||$298.24 million||14.89|
|Valero Energy Partners Competitors||$5.66 billion||$1.31 billion||38.61|
Valero Energy Partners’ competitors have higher revenue and earnings than Valero Energy Partners. Valero Energy Partners is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Valero Energy Partners competitors beat Valero Energy Partners on 8 of the 15 factors compared.
About Valero Energy Partners
Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.
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