American Midstream Partners, (NYSE: AMID) and Tesoro Corporation (NYSE:ANDV) are both oils/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.
Institutional and Insider Ownership
42.2% of American Midstream Partners, shares are held by institutional investors. Comparatively, 77.5% of Tesoro Corporation shares are held by institutional investors. 5.4% of American Midstream Partners, shares are held by company insiders. Comparatively, 0.9% of Tesoro Corporation 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.
This table compares American Midstream Partners, and Tesoro Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Midstream Partners,||-10.35%||-19.39%||-3.16%|
American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 12.7%. Tesoro Corporation pays an annual dividend of $2.36 per share and has a dividend yield of 2.4%. American Midstream Partners, pays out -87.3% of its earnings in the form of a dividend. Tesoro Corporation pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
American Midstream Partners, has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Tesoro Corporation has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.
Earnings & Valuation
This table compares American Midstream Partners, and Tesoro Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Midstream Partners,||$296.02 million||2.31||$12.92 million||($1.89)||-6.88|
American Midstream Partners, has higher revenue and earnings than Tesoro Corporation. American Midstream Partners, is trading at a lower price-to-earnings ratio than Tesoro Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for American Midstream Partners, and Tesoro Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Midstream Partners,||0||1||2||0||2.67|
American Midstream Partners, presently has a consensus price target of $16.50, suggesting a potential upside of 26.92%. Tesoro Corporation has a consensus price target of $109.13, suggesting a potential upside of 9.64%. Given American Midstream Partners,’s higher possible upside, equities research analysts clearly believe American Midstream Partners, is more favorable than Tesoro Corporation.
Tesoro Corporation beats American Midstream Partners, on 8 of the 13 factors compared between the two stocks.
About American Midstream Partners,
American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.
About Tesoro Corporation
Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.
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