World Point Terminals (WPT) and Plains All American Pipeline (PAA) Head-To-Head Analysis
World Point Terminals (NYSE: WPT) and Plains All American Pipeline (NYSE:PAA) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
Volatility & Risk
World Point Terminals has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Plains All American Pipeline has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
13.2% of World Point Terminals shares are owned by institutional investors. Comparatively, 43.4% of Plains All American Pipeline shares are owned by institutional investors. 1.3% of Plains All American Pipeline shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares World Point Terminals and Plains All American Pipeline’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|World Point Terminals||N/A||N/A||N/A||$1.04||16.63|
|Plains All American Pipeline||$20.18 billion||0.77||$726.00 million||$0.92||23.14|
Plains All American Pipeline has higher revenue and earnings than World Point Terminals. World Point Terminals is trading at a lower price-to-earnings ratio than Plains All American Pipeline, indicating that it is currently the more affordable of the two stocks.
World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Plains All American Pipeline pays an annual dividend of $2.20 per share and has a dividend yield of 10.3%. World Point Terminals pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plains All American Pipeline pays out 239.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares World Point Terminals and Plains All American Pipeline’s 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%|
|Plains All American Pipeline||3.22%||9.06%||3.10%|
This is a summary of recent recommendations for World Point Terminals and Plains All American Pipeline, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|World Point Terminals||0||2||0||0||2.00|
|Plains All American Pipeline||0||14||7||0||2.33|
World Point Terminals presently has a consensus target price of $17.00, suggesting a potential downside of 1.68%. Plains All American Pipeline has a consensus target price of $26.28, suggesting a potential upside of 23.43%. Given Plains All American Pipeline’s stronger consensus rating and higher probable upside, analysts plainly believe Plains All American Pipeline is more favorable than World Point Terminals.
Plains All American Pipeline beats World Point Terminals on 9 of the 14 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 Plains All American Pipeline
Plains All American Pipeline, L.P. owns and operates midstream energy infrastructure and provide logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The Company operates through three segments: Transportation, Facilities, and Supply and Logistics. The Company’s transportation segment operations consist of activities associated with transporting crude oil and NGL on pipelines, gathering systems, trucks and barges. Its Facilities segment operations consist of activities associated with providing storage, terminaling and throughput services for crude oil, refined products, NGL and natural gas, as well as NGL fractionation and isomerization services and natural gas and condensate processing services. Its supply and logistics segment operations consist of the merchant-related activities, including the purchase of the United States and Canadian crude oil at the wellhead, the bulk purchase of crude oil at pipeline, terminal and rail facilities.
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