Sprague Resources (NYSE: SRLP) and Sasol (NYSE:SSL) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Dividends

Sprague Resources pays an annual dividend of $2.43 per share and has a dividend yield of 9.6%. Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.6%. Sprague Resources pays out 119.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sprague Resources has raised its dividend for 2 consecutive years. Sprague Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Sprague Resources has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Sasol has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Sprague Resources and Sasol’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sprague Resources $2.62 billion 0.22 $105.38 million $2.03 12.44
Sasol $13.33 billion 1.39 $3.92 billion N/A N/A

Sasol has higher revenue and earnings than Sprague Resources.

Profitability

This table compares Sprague Resources and Sasol’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprague Resources 1.77% 29.64% 4.95%
Sasol N/A N/A N/A

Institutional & Insider Ownership

24.5% of Sprague Resources shares are owned by institutional investors. Comparatively, 1.9% of Sasol shares are owned by institutional investors. 1.0% of Sasol shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sprague Resources and Sasol, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprague Resources 0 0 2 0 3.00
Sasol 0 1 2 0 2.67

Sprague Resources currently has a consensus target price of $33.00, indicating a potential upside of 30.69%. Given Sprague Resources’ stronger consensus rating and higher probable upside, equities analysts clearly believe Sprague Resources is more favorable than Sasol.

Summary

Sprague Resources beats Sasol on 10 of the 15 factors compared between the two stocks.

Sprague Resources Company Profile

Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined products and natural gas, and provides storage and handling services for a range of materials. The Company operates through four segments: refined products, which purchases a range of refined products, such as heating oil, diesel fuel, residual fuel oil, asphalt, kerosene, jet fuel and gasoline from refining companies, trading organizations and producers; natural gas, which purchases natural gas from natural gas producers and trading companies, and sells and distributes natural gas to commercial and industrial customers in the Northeast and Mid-Atlantic United States; materials handling, which offloads, stores and prepares for delivery a range of customer-owned products, including asphalt, clay slurry, coal and heavy equipment, and other operations, which include the purchase and distribution of coal, certain commercial trucking activities and the heating equipment service business.

Sasol Company Profile

Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.

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