Blueknight Energy Partners (NASDAQ: BKEP) and Plains Group (NYSE:PAGP) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Blueknight Energy Partners and Plains Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blueknight Energy Partners 0 0 1 0 3.00
Plains Group 0 10 8 0 2.44

Blueknight Energy Partners presently has a consensus price target of $8.00, indicating a potential upside of 55.34%. Plains Group has a consensus price target of $27.24, indicating a potential upside of 34.83%. Given Blueknight Energy Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Blueknight Energy Partners is more favorable than Plains Group.

Valuation & Earnings

This table compares Blueknight Energy Partners and Plains Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Blueknight Energy Partners $177.39 million 1.11 -$4.84 million ($0.18) -28.61
Plains Group $20.18 billion 0.15 $94.00 million $0.44 45.91

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

Insider and Institutional Ownership

58.1% of Blueknight Energy Partners shares are owned by institutional investors. Comparatively, 76.8% of Plains Group shares are owned by institutional investors. 1.7% of Blueknight Energy Partners shares are owned by insiders. Comparatively, 39.9% of Plains Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Blueknight Energy Partners pays an annual dividend of $0.58 per share and has a dividend yield of 11.3%. Plains Group pays an annual dividend of $1.20 per share and has a dividend yield of 5.9%. Blueknight Energy Partners pays out -322.2% of its earnings in the form of a dividend. Plains Group pays out 272.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plains Group has raised its dividend for 2 consecutive years. Blueknight Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Blueknight Energy Partners and Plains Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blueknight Energy Partners 11.78% -10.32% 6.85%
Plains Group 0.25% 0.50% 0.22%

Risk & Volatility

Blueknight Energy Partners has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Plains Group has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Summary

Plains Group beats Blueknight Energy Partners on 9 of the 16 factors compared between the two stocks.

Blueknight Energy Partners Company Profile

Blueknight Energy Partners, L.P. is a master limited partnership company. The Company manages its operations through four segments: asphalt terminaling services, crude oil terminaling and storage services, crude oil pipeline services, and crude oil trucking and producer field services. Asphalt terminaling services segment operations generally consist of fee based activities associated with providing storage, terminaling and throughput services for asphalt product and residual fuel oil. Crude oil terminaling and storage segment operations generally consist of fee based activities associated with providing storage, terminaling, and throughput services for crude oil. Crude oil pipeline services segment operations generally consist of fee-based activity associated with transporting crude oil products on pipelines. Crude oil trucking and producer field services segment operations generally consist of fee-based activity associated with transporting crude oil products on trucks.

Plains Group Company Profile

Plains GP Holdings, L.P. owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The Company operates through three segments: Transportation, Facilities, and Supply and Logistics. Through its three business segments, the Company is engaged in the transportation, storage, terminaling and marketing of crude oil, NGL and natural gas. The Transportation segment operations consist of fee-based activities associated with transporting crude oil and NGL on pipelines, gathering systems, trucks and barges. The Facilities segment operations consist of fee-based activities associated with providing storage, terminaling and throughput services for crude oil, refined products, NGL and natural gas, as well as NGL fractionation and isomerization services and natural gas and condensate processing services. The Supply and Logistics segment operations consist of the merchant-related activities.

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