Magellan Midstream Partners (MMP) versus Western Refining Logistics (WNRL) Financial Analysis
Magellan Midstream Partners (NYSE: MMP) and Western Refining Logistics (NYSE:WNRL) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
This is a summary of recent recommendations and price targets for Magellan Midstream Partners and Western Refining Logistics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magellan Midstream Partners||2||6||3||0||2.09|
|Western Refining Logistics||0||0||0||0||N/A|
Institutional and Insider Ownership
62.4% of Magellan Midstream Partners shares are held by institutional investors. Comparatively, 40.1% of Western Refining Logistics shares are held by institutional investors. 0.2% of Magellan Midstream Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Magellan Midstream Partners has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Western Refining Logistics has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Valuation & Earnings
This table compares Magellan Midstream Partners and Western Refining Logistics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Magellan Midstream Partners||$2.51 billion||5.77||$869.53 million||$3.81||16.64|
|Western Refining Logistics||N/A||N/A||N/A||$1.07||22.29|
Magellan Midstream Partners has higher revenue and earnings than Western Refining Logistics. Magellan Midstream Partners is trading at a lower price-to-earnings ratio than Western Refining Logistics, indicating that it is currently the more affordable of the two stocks.
This table compares Magellan Midstream Partners and Western Refining Logistics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magellan Midstream Partners||34.67%||40.85%||12.31%|
|Western Refining Logistics||2.98%||62.93%||13.13%|
Magellan Midstream Partners pays an annual dividend of $3.68 per share and has a dividend yield of 5.8%. Western Refining Logistics pays an annual dividend of $1.87 per share and has a dividend yield of 7.8%. Magellan Midstream Partners pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Refining Logistics pays out 174.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magellan Midstream Partners has increased its dividend for 8 consecutive years and Western Refining Logistics has increased its dividend for 3 consecutive years.
Magellan Midstream Partners beats Western Refining Logistics on 9 of the 14 factors compared between the two stocks.
Magellan Midstream Partners Company Profile
Magellan Midstream Partners, L.P. is principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. The Company operates through three segments: refined products, crude oil and marine storage. As of December 31, 2016, its asset portfolio, including the assets of its joint ventures, consisted of its refined products segment, consisting 9,700-mile refined products pipeline system with 53 terminals, as well as 26 independent terminals not connected to its pipeline system and its 1,100-mile ammonia pipeline system; its crude oil segment, consisted of approximately 2,200 miles of crude oil pipelines and storage facilities with an aggregate storage capacity of approximately 26 million barrels, of which 16 million are used for contract storage, and its marine storage segment, consisted of five marine terminals located along coastal waterways with an aggregate storage capacity of approximately 26 million barrels.
Western Refining Logistics Company Profile
Western Refining Logistics, LP owns, operates, develops, and acquires logistics and related assets and businesses to include terminals, storage tanks, pipelines and other logistics assets related to the terminaling, transportation, storage and distribution of crude oil and refined products. The Company’s segments include logistics and wholesale. The Company operates its logistics business and wholesale business under commercial and service agreements with Western Refining, Inc. (Western). Its logistics assets consist of pipeline and gathering infrastructure and terminalling, transportation and storage assets in the Southwest and the Upper Great Plains region. Its wholesale business purchases its petroleum fuels from Western, and its lubricants and additional petroleum fuels from third-party suppliers.
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