Genesis Energy (NYSE:GEL) and BP Midstream Partners (NYSE:BPMP) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Institutional and Insider Ownership
65.0% of Genesis Energy shares are held by institutional investors. Comparatively, 30.9% of BP Midstream Partners shares are held by institutional investors. 0.7% of Genesis Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Genesis Energy pays an annual dividend of $0.60 per share and has a dividend yield of 4.9%. BP Midstream Partners pays an annual dividend of $1.39 per share and has a dividend yield of 9.4%. Genesis Energy pays out -39.0% of its earnings in the form of a dividend. BP Midstream Partners pays out 89.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genesis Energy has raised its dividend for 1 consecutive years and BP Midstream Partners has raised its dividend for 1 consecutive years.
Risk and Volatility
Genesis Energy has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, BP Midstream Partners has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Genesis Energy and BP Midstream Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BP Midstream Partners||0||2||2||0||2.50|
Genesis Energy presently has a consensus price target of $10.00, indicating a potential downside of 19.09%. BP Midstream Partners has a consensus price target of $15.00, indicating a potential upside of 1.01%. Given BP Midstream Partners’ higher probable upside, analysts plainly believe BP Midstream Partners is more favorable than Genesis Energy.
This table compares Genesis Energy and BP Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BP Midstream Partners||132.00%||66.77%||22.97%|
Earnings and Valuation
This table compares Genesis Energy and BP Midstream Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Genesis Energy||$1.82 billion||0.83||-$416.68 million||($1.54)||-8.03|
|BP Midstream Partners||$128.90 million||12.07||$168.40 million||$1.56||9.52|
BP Midstream Partners has lower revenue, but higher earnings than Genesis Energy. Genesis Energy is trading at a lower price-to-earnings ratio than BP Midstream Partners, indicating that it is currently the more affordable of the two stocks.
BP Midstream Partners beats Genesis Energy on 9 of the 16 factors compared between the two stocks.
About Genesis Energy
Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry. The company's Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations; and in the deepwater pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico. This segment owns interests in approximately 1,422 miles of crude oil pipelines located offshore in the Gulf of Mexico. Its Sodium Minerals and Sulfur Services segment offers sulfur-extraction services to refining operations; and operates storage and transportation assets. This segment provides services to ten refining operations; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. Its Onshore Facilities and Transportation segment offers onshore facilities and transportation services to Gulf Coast crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products. It operates trucks, trailers, railcars, and terminals and tankage with 4.2 million barrels of storage capacity in various locations along the Gulf Coast. This segment also transports crude oil and carbon dioxide (CO2). It owns four onshore crude oil pipeline systems with approximately 450 miles of pipe in Alabama, Florida, Louisiana, Mississippi, and Texas; and four operational crude oil rail unloading facilities in Baton Rouge and Raceland, Louisiana, as well as Walnut Hill, Florida and Natchez, Mississippi. Its Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges with a combined transportation capacity of 3.2 million barrels; and 42 push/tow boats. In addition, the company produces natural soda ash. Genesis Energy, LLC serves as a general partner of the company. The company was incorporated in 1996 and is headquartered in Houston, Texas.
About BP Midstream Partners
BP Midstream Partners LP owns, acquires, develops, and operates pipelines and other midstream assets in the United States. Its assets consist of interests in entities that own crude oil, natural gas, refined products, and diluent pipelines as well as refined product terminals. BP Midstream Partners GP LLC serves as a general partner of BP Midstream Partners LP. The company was incorporated in 2017 and is based in Houston, Texas.
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