Buckeye Partners (BPL) & BP Midstream Partners (BPMP) Head-To-Head Contrast

Buckeye Partners (NYSE: BPL) and BP Midstream Partners (NYSE:BPMP) are both mid-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Buckeye Partners and BP Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buckeye Partners 12.69% 9.72% 4.69%
BP Midstream Partners N/A N/A N/A

Earnings and Valuation

This table compares Buckeye Partners and BP Midstream Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Buckeye Partners $3.25 billion 2.38 $535.60 million $3.26 16.17
BP Midstream Partners N/A N/A N/A $0.42 50.43

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

Dividends

Buckeye Partners pays an annual dividend of $5.05 per share and has a dividend yield of 9.6%. BP Midstream Partners does not pay a dividend. Buckeye Partners pays out 154.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BP Midstream Partners has raised its dividend for 14 consecutive years.

Institutional & Insider Ownership

69.9% of Buckeye Partners shares are held by institutional investors. 0.4% of Buckeye Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Buckeye Partners and BP Midstream Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buckeye Partners 0 8 2 0 2.20
BP Midstream Partners 0 4 2 0 2.33

Buckeye Partners currently has a consensus price target of $65.00, suggesting a potential upside of 23.34%. BP Midstream Partners has a consensus price target of $20.80, suggesting a potential downside of 1.79%. Given Buckeye Partners’ higher possible upside, equities analysts plainly believe Buckeye Partners is more favorable than BP Midstream Partners.

Summary

Buckeye Partners beats BP Midstream Partners on 9 of the 13 factors compared between the two stocks.

Buckeye Partners Company Profile

Buckeye Partners, L.P. (Buckeye) owns and operates a network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage, processing and marketing of liquid petroleum products. Its segments include Domestic Pipelines & Terminals, Global Marine Terminals and Merchant Services. As of December 31, 2016, the Domestic Pipelines & Terminals segment owned and operated approximately 6,000 miles of pipeline located primarily in the northeastern and upper Midwestern portions of the United States, and serviced approximately 110 delivery locations. The Global Marine Terminals segment provides marine accessible bulk storage and blending services, rail and truck rack loading/unloading, along with petroleum processing services in the East Coast and Gulf Coast regions of the United States and in the Caribbean. The Merchant Services segment is a wholesale distributor of petroleum products in the continental United States and in the Caribbean.

BP Midstream Partners Company Profile

BP Midstream Partners LP is a master limited partnership formed by BP Pipelines (North America) Inc. The Company owns, operates, develops and acquires pipelines and other midstream assets. It owns one onshore crude oil pipeline system, one onshore refined products pipeline system, one onshore diluent pipeline system, interests in four offshore crude oil pipeline systems and an interest in one offshore natural gas pipeline system. Its onshore crude oil, refined products and diluent pipelines include BP2 Pipeline, River Rouge Pipeline and Diamondback Pipeline. Its offshore crude oil and natural gas pipelines include Mars System, Caesar Pipeline, Cleopatra Pipeline, Proteus Pipeline and Endymion Pipeline.

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