Genesis Energy (NYSE: GEL) and Martin Midstream Partners (NASDAQ:MMLP) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Risk and Volatility
Genesis Energy has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Martin Midstream Partners has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.
This table compares Genesis Energy and Martin Midstream Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Genesis Energy||$2.03 billion||1.33||$82.64 million||$1.06||20.82|
|Martin Midstream Partners||$946.11 million||0.58||$17.13 million||$0.44||32.50|
Genesis Energy has higher revenue and earnings than Martin Midstream Partners. Genesis Energy is trading at a lower price-to-earnings ratio than Martin Midstream Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Genesis Energy and Martin Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Martin Midstream Partners||0||3||2||0||2.40|
Genesis Energy currently has a consensus price target of $31.33, suggesting a potential upside of 41.97%. Martin Midstream Partners has a consensus price target of $18.00, suggesting a potential upside of 25.87%. Given Genesis Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Genesis Energy is more favorable than Martin Midstream Partners.
Insider & Institutional Ownership
74.5% of Genesis Energy shares are held by institutional investors. Comparatively, 36.6% of Martin Midstream Partners shares are held by institutional investors. 0.7% of Genesis Energy shares are held by company insiders. Comparatively, 17.0% of Martin Midstream Partners shares are held 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.
This table compares Genesis Energy and Martin Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Martin Midstream Partners||1.81%||8.22%||2.14%|
Genesis Energy pays an annual dividend of $2.04 per share and has a dividend yield of 9.2%. Martin Midstream Partners pays an annual dividend of $2.00 per share and has a dividend yield of 14.0%. Genesis Energy pays out 192.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Martin Midstream Partners pays out 454.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Genesis Energy beats Martin Midstream Partners on 11 of the 16 factors compared between the two stocks.
About Genesis Energy
Genesis Energy L.P. is a limited partnership focused on the midstream segment of the oil and gas industry. The Company operates through four segments: Offshore Pipeline Transportation, Refinery Services, Marine Transportation, and Supply and Logistics. The Offshore Pipeline Transportation segment is engaged in the offshore transportation of crude oil and natural gas in the Gulf of Mexico. The Refinery Services segment is involved in the processing of high sulfur (or sour) gas streams as part of refining operations to remove the sulfur and selling the related by-product, sodium hydrosulfide (NaHS). The Marine Transportation segment provides waterborne transportation of petroleum products and crude oil throughout North America. The Supply and Logistics segment is engaged in terminaling, blending, storing, marketing, and transporting crude oil and petroleum products (fuel oil, asphalt and other heavy refined products) and carbon dioxide.
About Martin Midstream Partners
Martin Midstream Partners L.P. is a limited partnership with a set of operations focused in the United States Gulf Coast region. The Company’s four business lines include terminalling and storage services for petroleum products and by-products, including the refining of naphthenic crude oil and the blending and packaging of finished lubricants; natural gas services, including liquids transportation and distribution services, and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution, and marine transportation services for petroleum products and by-products. The petroleum products and by-products it collects, transports, stores and markets are produced by oil and gas companies. As of December 31, 2016, it operated 26 marine shore-based terminal facilities and 14 specialty terminal facilities located in the United States Gulf Coast region. Its customers include oil and gas companies, chemical companies and fertilizer manufacturers.
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