World Point Terminals (NYSE: WPT) and Noble Midstream Partners (NYSE:NBLX) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

13.2% of World Point Terminals shares are owned by institutional investors. Comparatively, 83.9% of Noble Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares World Point Terminals and Noble Midstream Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
World Point Terminals N/A N/A N/A $1.03 16.79
Noble Midstream Partners $203.73 million 4.92 $150.22 million $2.65 18.87

Noble Midstream Partners has higher revenue and earnings than World Point Terminals. World Point Terminals is trading at a lower price-to-earnings ratio than Noble Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for World Point Terminals and Noble Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
World Point Terminals 0 2 0 0 2.00
Noble Midstream Partners 0 2 7 0 2.78

World Point Terminals currently has a consensus price target of $17.00, indicating a potential downside of 1.68%. Noble Midstream Partners has a consensus price target of $51.57, indicating a potential upside of 3.12%. Given Noble Midstream Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Noble Midstream Partners is more favorable than World Point Terminals.

Profitability

This table compares World Point Terminals and Noble Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
World Point Terminals 37.15% 19.57% 18.37%
Noble Midstream Partners 50.57% 31.64% 24.40%

Dividends

World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Noble Midstream Partners pays an annual dividend of $1.78 per share and has a dividend yield of 3.6%. World Point Terminals pays out 116.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Noble Midstream Partners pays out 67.2% of its earnings in the form of a dividend.

Summary

Noble Midstream Partners beats World Point Terminals on 10 of the 11 factors compared between the two stocks.

About World Point Terminals

World Point Terminals, LP owns, operates, develops and acquires liquid bulk storage terminals and other assets relating to the storage of petroleum products, including light refined products, heavy refined products and crude oil. The Company operates fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States. As of December 31, 2016, through its subsidiary, Center Point Terminal Company, LLC (Center Point), the Company owned and operated 15.6 million barrels of tankage at terminals, which are located in the East Coast, Gulf Coast and Midwest regions of the United States. The Company’s terminal facilities are located on waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with loading logistics. Its terminal facilities also have rail or pipeline access.

About Noble Midstream Partners

Noble Midstream Partners LP is engaged in owning, operating, developing and acquiring a range of domestic midstream infrastructure assets. The Company’s areas of focus are in the area of Denver-Julesburg (DJ) Basin in Colorado and the Southern Delaware Basin position of the Permian Basin in Texas (Delaware Basin). Its segments include Gathering Systems, Fresh Water Delivery, and Investments in White Cliffs and Other. The Gathering Systems segment includes crude oil, natural gas and produced water gathering, as well as crude oil treating. It holds interest in White Cliffs Pipeline L.L.C. (the White Cliffs Interest). The Investments in White Cliffs and Other segment includes activity associated with the White Cliffs Interest. As of December 31, 2016, the White Cliffs Pipeline system consisted of two 527-mile crude oil pipelines that extended from the DJ Basin to the Cushing, Oklahoma. It provides crude oil, natural gas, and water-related midstream services for Noble Energy, Inc.

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