Head-To-Head Contrast: Global Partners (NYSE:GLP) and Delek US (NYSE:DK)

Delek US (NYSE:DK) and Global Partners (NYSE:GLP) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares Delek US and Global Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Delek US	$10.72 billion	0.40	-$22.80 million	$3.56	19.91
Global Partners	$18.56 billion	0.08	$79.22 million	$4.91	9.13

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

Profitability

This table compares Delek US and Global Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Delek US	1.86%	109.03%	6.44%
Global Partners	0.91%	30.87%	4.92%

Insider & Institutional Ownership

97.0% of Delek US shares are owned by institutional investors. Comparatively, 38.1% of Global Partners shares are owned by institutional investors. 3.6% of Delek US shares are owned by company insiders. Comparatively, 41.5% of Global Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Delek US has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Global Partners has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Dividends

Delek US pays an annual dividend of $1.02 per share and has a dividend yield of 1.4%. Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 7.0%. Delek US pays out 28.7% of its earnings in the form of a dividend. Global Partners pays out 63.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Delek US has increased its dividend for 2 consecutive years and Global Partners has increased its dividend for 5 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Delek US and Global Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Delek US	0	8	5	1	2.50
Global Partners	0	2	1	0	2.33

Delek US presently has a consensus target price of $75.00, indicating a potential upside of 5.84%. Global Partners has a consensus target price of $46.00, indicating a potential upside of 2.63%. Given Delek US’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Delek US is more favorable than Global Partners.

Summary

Delek US beats Global Partners on 10 of the 18 factors compared between the two stocks.

About Delek US

Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through Refining, Logistics, and Retail segments. The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal. It owns and operates refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany, Mississippi. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products, as well as disposes and recycles water for third parties. It owns or leases crude oil transportation pipelines, refined product pipelines, crude oil gathering systems, and associated crude oil storage tanks; and owns and operates light product distribution terminals, as well as markets light products using third-party terminals. The Retail segment owns and leases convenience store sites located primarily in West Texas and New Mexico. Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders to the public primarily under the 7-Eleven and DK or Alon brand names. It serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, government, and independent retail fuel operators. Delek US Holdings, Inc. was founded in 2001 and is headquartered in Brentwood, Tennessee.

About Global Partners

Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.