Cenovus Energy (NYSE: CVE) and Arc Logistic Partners (NYSE:ARCX) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Dividends

Cenovus Energy pays an annual dividend of $0.15 per share and has a dividend yield of 2.0%. Arc Logistic Partners pays an annual dividend of $1.76 per share and has a dividend yield of 10.7%. Cenovus Energy pays out 8.3% of its earnings in the form of a dividend. Arc Logistic Partners pays out 247.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cenovus Energy has raised its dividend for 2 consecutive years.

Volatility and Risk

Cenovus Energy has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Arc Logistic Partners has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Cenovus Energy and Arc Logistic Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cenovus Energy 2 5 7 0 2.36
Arc Logistic Partners 0 2 1 0 2.33

Cenovus Energy currently has a consensus target price of $18.92, indicating a potential upside of 152.22%. Arc Logistic Partners has a consensus target price of $20.00, indicating a potential upside of 21.66%. Given Cenovus Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cenovus Energy is more favorable than Arc Logistic Partners.

Valuation & Earnings

This table compares Cenovus Energy and Arc Logistic Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cenovus Energy $11.79 billion 0.78 $1.75 billion $1.80 4.17
Arc Logistic Partners $105.58 million 3.04 $53.34 million $0.71 23.15

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

Insider and Institutional Ownership

56.2% of Cenovus Energy shares are held by institutional investors. Comparatively, 40.6% of Arc Logistic Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Cenovus Energy and Arc Logistic Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cenovus Energy 17.89% 3.20% 1.46%
Arc Logistic Partners 13.28% 4.10% 2.31%

Summary

Cenovus Energy beats Arc Logistic Partners on 11 of the 16 factors compared between the two stocks.

Cenovus Energy Company Profile

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

Arc Logistic Partners Company Profile

Arc Logistics Partners LP owns, operates, develops and acquires a portfolio of energy logistics assets. The Company is engaged in the terminaling, storage, throughput and transloading of crude oil and petroleum products. The Company is focused on growing its business through the optimization, organic development and acquisition of terminaling, storage, rail, pipeline and other energy logistics assets. As of March 6, 2017, the Company’s energy logistics assets were located in the East Coast, Gulf Coast, Midwest, Rocky Mountains and West Coast regions of the United States and supplied a group of third-party customers, including oil companies, independent refiners, crude oil and petroleum product marketers, distributors and various industrial manufacturers. As of December 31, 2016, its assets consisted of 21 terminals in 12 states; four rail transloading facilities, and the liquefied natural gas (LNG) Interest in connection with the LNG Facility.

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