Contrasting Targa Resources Partners (NGLS) and China Petroleum & Chemical Corporation (SNP)
Targa Resources Partners (NYSE: NGLS) and China Petroleum & Chemical Corporation (NYSE:SNP) are both mid-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
0.8% of China Petroleum & Chemical Corporation shares are owned by institutional investors. 92.2% of China Petroleum & Chemical Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Targa Resources Partners and China Petroleum & Chemical Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Targa Resources Partners||3.27%||0.29%||1.61%|
|China Petroleum & Chemical Corporation||N/A||4.48%||2.54%|
Targa Resources Partners pays an annual dividend of $3.30 per share and has a dividend yield of 31.0%. China Petroleum & Chemical Corporation pays an annual dividend of $3.55 per share and has a dividend yield of 5.0%. Targa Resources Partners pays out 423.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Petroleum & Chemical Corporation pays out 53.1% of its earnings in the form of a dividend. Targa Resources Partners has raised its dividend for 7 consecutive years. Targa Resources Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Targa Resources Partners and China Petroleum & Chemical Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Targa Resources Partners||N/A||N/A||N/A||$0.78||13.65|
|China Petroleum & Chemical Corporation||$290.79 billion||0.29||$7.02 billion||$6.69||10.58|
China Petroleum & Chemical Corporation has higher revenue and earnings than Targa Resources Partners. China Petroleum & Chemical Corporation is trading at a lower price-to-earnings ratio than Targa Resources Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Targa Resources Partners and China Petroleum & Chemical Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Targa Resources Partners||0||1||0||0||2.00|
|China Petroleum & Chemical Corporation||0||1||3||0||2.75|
Targa Resources Partners presently has a consensus price target of $52.00, indicating a potential upside of 388.26%. Given Targa Resources Partners’ higher probable upside, equities analysts plainly believe Targa Resources Partners is more favorable than China Petroleum & Chemical Corporation.
China Petroleum & Chemical Corporation beats Targa Resources Partners on 9 of the 13 factors compared between the two stocks.
Targa Resources Partners Company Profile
Targa Resources Partners LP is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States with a presence in crude oil gathering and petroleum terminaling. The Company is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to liquefied petroleum gas (LPG) exporters; gathering, storing and terminaling crude oil, and storing, terminaling and selling refined petroleum products. The Company operates in two divisions: Gathering and Processing, and Logistics and Marketing. The Gathering and Processing division consists of two segments: Field Gathering and Processing, and Coastal Gathering and Processing. The Logistics and Marketing division consists of two segments: Logistics Assets and Marketing and Distribution.
China Petroleum & Chemical Corporation Company Profile
China Petroleum & Chemical Corporation is a China-based energy and chemical company. The Company’s segments include Exploration and Development segment, Refining segment, Marketing and Distribution segment, Chemicals segment, and Corporate and Others segment. Exploration and Development segment explores and develops oil fields, as well as produces crude oil and natural gas. Refining segment processes and purifies crude oil, which is sourced from Exploration and Development segment and external suppliers. Marketing and Distribution segment owns and operates oil depots and service stations in China. Chemical segment manufactures and sells petrochemical products, derivative petrochemical products and other chemical products to external customers.
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