Longwei Petroleum Investment (OTCMKTS:LPIH) and Sprague Resources (NYSE:SRLP) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
This is a breakdown of current recommendations for Longwei Petroleum Investment and Sprague Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Longwei Petroleum Investment||0||0||0||0||N/A|
Sprague Resources has a consensus target price of $27.00, indicating a potential upside of 39.46%. Given Sprague Resources’ higher possible upside, analysts clearly believe Sprague Resources is more favorable than Longwei Petroleum Investment.
Sprague Resources pays an annual dividend of $2.67 per share and has a dividend yield of 13.8%. Longwei Petroleum Investment does not pay a dividend. Sprague Resources pays out 236.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sprague Resources has raised its dividend for 3 consecutive years.
Institutional and Insider Ownership
21.7% of Sprague Resources shares are owned by institutional investors. 66.1% of Longwei Petroleum Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Longwei Petroleum Investment and Sprague Resources’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Longwei Petroleum Investment||N/A||N/A||N/A||N/A||N/A|
|Sprague Resources||$2.86 billion||0.15||$29.49 million||$1.13||17.13|
Sprague Resources has higher revenue and earnings than Longwei Petroleum Investment.
This table compares Longwei Petroleum Investment and Sprague Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Longwei Petroleum Investment||N/A||N/A||N/A|
Sprague Resources beats Longwei Petroleum Investment on 9 of the 11 factors compared between the two stocks.
Longwei Petroleum Investment Company Profile
Longwei Petroleum Investment Holding Limited, an energy company, engages in the wholesale distribution of finished petroleum products in the People's Republic of China. The company is involved in the transportation, storage, and sale of finished petroleum products, including diesel, gasoline, fuel oil, and solvents from various petroleum refineries. It also acts as a purchasing agent for other intermediaries; and operates two retail gas stations, which sells diesel and gasoline. The company markets its products to commercial, industrial, retail, and wholesale customers, including transportation companies, coal mining operators, power suppliers, large-scale gas stations, and small and independent gas stations. Longwei Petroleum Investment Holding Limited was founded in 1995 and is headquartered in Taiyuan, the People's Republic of China.
Sprague Resources Company Profile
Sprague Resources LP engages in the purchase, storage, distribution, and sale of refined petroleum products and natural gas in the United States. The company operates through four segments: Refined Products, Natural Gas, Materials Handling, and Other Operations. The Refined Products segment purchases and sells various refined products, such as heating oil, diesel fuel, residual fuel oil, kerosene, jet fuel, gasoline, and asphalt to wholesale, retail, and commercial customers. This segment's wholesale customers consist of approximately 1,200 home heating oil retailers, and diesel fuel and gasoline resellers; and commercial customers include federal and state agencies, municipalities, regional transit authorities, drill sites, large industrial companies, real estate management companies, hospitals, educational institutions, and asphalt paving companies. The Natural Gas segment purchases, sells, and distributes natural gas to approximately 16,000 commercial and industrial customer locations in 13 states in the Northeast and Mid-Atlantic United States. The Materials Handling segment offloads, stores, and prepares for the delivery of various customer-owned products, including asphalt, crude oil, clay slurry, salt, gypsum, residual fuel, coal, petroleum coke, caustic soda, tallow, pulp, and heavy equipment. The Other Operations segment engages in coal marketing and distribution; commercial trucking; and heating equipment service activities. The company owns, operates, and/or controls a network of refined products and materials handling terminals located throughout the Northeast United States, as well as in Quebec, Canada that have a combined storage capacity of approximately 14.7 million barrels for refined products and other liquid materials, as well as 2.0 million square feet of materials handling capacity. Sprague Resources LP was founded in 1870 and is headquartered in Portsmouth, New Hampshire.
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