NuStar Energy L.P. (NYSE: NS) and Martin Midstream Partners L.P. (NASDAQ:MMLP) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitabiliy and analyst recommendations.

Profitability

This table compares NuStar Energy L.P. and Martin Midstream Partners L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NuStar Energy L.P. 11.89% 11.51% 4.68%
Martin Midstream Partners L.P. 3.43% 8.89% 2.28%

Institutional & Insider Ownership

45.4% of NuStar Energy L.P. shares are owned by institutional investors. Comparatively, 33.9% of Martin Midstream Partners L.P. shares are owned by institutional investors. 4.1% of NuStar Energy L.P. shares are owned by insiders. Comparatively, 17.0% of Martin Midstream Partners L.P. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for NuStar Energy L.P. and Martin Midstream Partners L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NuStar Energy L.P. 0 8 3 0 2.27
Martin Midstream Partners L.P. 0 3 1 0 2.25

NuStar Energy L.P. presently has a consensus price target of $49.89, suggesting a potential upside of 10.20%. Martin Midstream Partners L.P. has a consensus price target of $22.00, suggesting a potential upside of 22.91%. Given Martin Midstream Partners L.P.’s higher probable upside, analysts clearly believe Martin Midstream Partners L.P. is more favorable than NuStar Energy L.P..

Earnings & Valuation

This table compares NuStar Energy L.P. and Martin Midstream Partners L.P.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NuStar Energy L.P. $1.84 billion 2.29 $582.14 million $1.19 38.04
Martin Midstream Partners L.P. $855.11 million 0.80 $165.43 million $0.68 26.32

NuStar Energy L.P. has higher revenue and earnings than Martin Midstream Partners L.P.. Martin Midstream Partners L.P. is trading at a lower price-to-earnings ratio than NuStar Energy L.P., indicating that it is currently the more affordable of the two stocks.

Dividends

NuStar Energy L.P. pays an annual dividend of $4.38 per share and has a dividend yield of 9.7%. Martin Midstream Partners L.P. pays an annual dividend of $2.00 per share and has a dividend yield of 11.2%. NuStar Energy L.P. pays out 368.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Martin Midstream Partners L.P. pays out 294.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Martin Midstream Partners L.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

NuStar Energy L.P. has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Martin Midstream Partners L.P. has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Summary

NuStar Energy L.P. beats Martin Midstream Partners L.P. on 11 of the 16 factors compared between the two stocks.

About NuStar Energy L.P.

NuStar Energy L.P. is engaged in the transportation of petroleum products and anhydrous ammonia; the terminalling and storage of petroleum products, and the marketing of petroleum products. The Company’s segments include pipeline, storage and fuels marketing. The pipeline segment consists of the transportation of refined petroleum products, crude oil and anhydrous ammonia. The storage segment consists of facilities that provide storage, handling and other services for petroleum products, crude oil, specialty chemicals and other liquids. The fuels marketing segment involve the purchase of crude oil, fuel oil, bunker fuel, fuel oil blending components and other refined products for resale. It conducts its operations through its subsidiaries, primarily NuStar Logistics, L.P. and NuStar Pipeline Operating Partnership L.P. As of May 4, 2017, it had more than 9,200 miles of pipeline and 81 terminal and storage facilities that provide approximately 96 million barrels of storage capacity.

About Martin Midstream Partners L.P.

Martin Midstream Partners L.P. is a limited partnership with a set of operations focused in the United States Gulf Coast region. The Company’s four business lines include terminalling and storage services for petroleum products and by-products, including the refining of naphthenic crude oil and the blending and packaging of finished lubricants; natural gas services, including liquids transportation and distribution services, and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution, and marine transportation services for petroleum products and by-products. The petroleum products and by-products it collects, transports, stores and markets are produced by oil and gas companies. As of December 31, 2016, it operated 26 marine shore-based terminal facilities and 14 specialty terminal facilities located in the United States Gulf Coast region. Its customers include oil and gas companies, chemical companies and fertilizer manufacturers.

Receive News & Ratings for NuStar Energy L.P. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NuStar Energy L.P. and related companies with Analyst Ratings Network's FREE daily email newsletter.