Sasol (NYSE: SSL) and American Midstream Partners (NYSE:AMID) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Dividends

Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.1%. American Midstream Partners pays an annual dividend of $1.65 per share and has a dividend yield of 11.8%. American Midstream Partners pays out -217.1% of its earnings in the form of a dividend.

Risk and Volatility

Sasol has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, American Midstream Partners has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sasol and American Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sasol 0 2 1 0 2.33
American Midstream Partners 0 2 0 0 2.00

American Midstream Partners has a consensus target price of $15.00, indicating a potential upside of 7.53%. Given American Midstream Partners’ higher possible upside, analysts plainly believe American Midstream Partners is more favorable than Sasol.

Valuation and Earnings

This table compares Sasol and American Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sasol $12.68 billion 1.78 $1.50 billion N/A N/A
American Midstream Partners $232.68 million 4.32 -$3.47 million ($0.76) -18.36

Sasol has higher revenue and earnings than American Midstream Partners.

Profitability

This table compares Sasol and American Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sasol N/A N/A N/A
American Midstream Partners 0.12% -11.67% -2.29%

Institutional & Insider Ownership

2.0% of Sasol shares are owned by institutional investors. Comparatively, 43.0% of American Midstream Partners shares are owned by institutional investors. 1.0% of Sasol shares are owned by company insiders. Comparatively, 5.4% of American Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

American Midstream Partners beats Sasol on 8 of the 14 factors compared between the two stocks.

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.

American Midstream Partners Company Profile

American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.

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