Western Refining Logistics (NYSE: WNRL) and Valero Energy Partners (NYSE:VLP) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Valuation and Earnings
This table compares Western Refining Logistics and Valero Energy Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western Refining Logistics||N/A||N/A||N/A||$1.07||22.29|
|Valero Energy Partners||$362.62 million||9.07||$188.83 million||$2.83||16.45|
Western Refining Logistics pays an annual dividend of $1.87 per share and has a dividend yield of 7.8%. Valero Energy Partners pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. Western Refining Logistics pays out 174.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Valero Energy Partners pays out 67.8% of its earnings in the form of a dividend. Western Refining Logistics has raised its dividend for 3 consecutive years and Valero Energy Partners has raised its dividend for 3 consecutive years.
This is a summary of current ratings and price targets for Western Refining Logistics and Valero Energy Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Refining Logistics||0||0||0||0||N/A|
|Valero Energy Partners||0||3||5||0||2.63|
Valero Energy Partners has a consensus price target of $51.71, suggesting a potential upside of 11.09%. Given Valero Energy Partners’ higher probable upside, analysts plainly believe Valero Energy Partners is more favorable than Western Refining Logistics.
Institutional and Insider Ownership
40.1% of Western Refining Logistics shares are held by institutional investors. Comparatively, 29.3% of Valero Energy Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Western Refining Logistics and Valero Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Refining Logistics||2.98%||62.93%||13.13%|
|Valero Energy Partners||54.43%||184.08%||22.28%|
Volatility & Risk
Western Refining Logistics has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Valero Energy Partners has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
Valero Energy Partners beats Western Refining Logistics on 8 of the 12 factors compared between the two stocks.
Western Refining Logistics Company Profile
Western Refining Logistics, LP owns, operates, develops, and acquires logistics and related assets and businesses to include terminals, storage tanks, pipelines and other logistics assets related to the terminaling, transportation, storage and distribution of crude oil and refined products. The Company’s segments include logistics and wholesale. The Company operates its logistics business and wholesale business under commercial and service agreements with Western Refining, Inc. (Western). Its logistics assets consist of pipeline and gathering infrastructure and terminalling, transportation and storage assets in the Southwest and the Upper Great Plains region. Its wholesale business purchases its petroleum fuels from Western, and its lubricants and additional petroleum fuels from third-party suppliers.
Valero Energy Partners Company Profile
Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.
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