Suburban Propane Partners, L.P. (NYSE: SPH) and Sprague Resources (NYSE:SRLP) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Volatility and Risk
Suburban Propane Partners, L.P. has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Sprague Resources has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
This table compares Suburban Propane Partners, L.P. and Sprague Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Suburban Propane Partners, L.P.||2.46%||4.09%||1.25%|
Suburban Propane Partners, L.P. pays an annual dividend of $3.55 per share and has a dividend yield of 13.6%. Sprague Resources pays an annual dividend of $2.43 per share and has a dividend yield of 9.5%. Suburban Propane Partners, L.P. pays out 788.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sprague Resources pays out 119.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suburban Propane Partners, L.P. has raised its dividend for 2 consecutive years and Sprague Resources has raised its dividend for 2 consecutive years.
This is a summary of recent ratings and recommmendations for Suburban Propane Partners, L.P. and Sprague Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Suburban Propane Partners, L.P.||1||1||1||0||2.00|
Suburban Propane Partners, L.P. currently has a consensus target price of $27.33, suggesting a potential upside of 4.57%. Sprague Resources has a consensus target price of $33.00, suggesting a potential upside of 28.65%. Given Sprague Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Sprague Resources is more favorable than Suburban Propane Partners, L.P..
Insider and Institutional Ownership
25.6% of Suburban Propane Partners, L.P. shares are owned by institutional investors. Comparatively, 24.6% of Sprague Resources shares are owned by institutional investors. 0.6% of Suburban Propane Partners, L.P. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Suburban Propane Partners, L.P. and Sprague Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Suburban Propane Partners, L.P.||$1.15 billion||1.39||$229.21 million||$0.45||58.09|
|Sprague Resources||$2.62 billion||0.22||$105.38 million||$2.03||12.64|
Suburban Propane Partners, L.P. has higher revenue, but lower earnings than Sprague Resources. Sprague Resources is trading at a lower price-to-earnings ratio than Suburban Propane Partners, L.P., indicating that it is currently the more affordable of the two stocks.
Sprague Resources beats Suburban Propane Partners, L.P. on 9 of the 16 factors compared between the two stocks.
Suburban Propane Partners, L.P. Company Profile
Suburban Propane Partners, L.P. is a marketer and distributor of a range of products. The Company specializes in the distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. In support of its marketing and distribution operations, the Company installs and services a range of home comfort equipment, particularly in the areas of heating and ventilation. The Company conducts its business through Suburban Propane, L.P., which operates its propane business and assets (the Operating Partnership), and its direct and indirect subsidiaries. As of September 24, 2016, it had sold approximately 414.8 million gallons of propane and 30.9 million gallons of fuel oil and refined fuels to retail customers. The Company owns and operates a propane storage facility in Elk Grove, California.
Sprague Resources Company Profile
Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined products and natural gas, and provides storage and handling services for a range of materials. The Company operates through four segments: refined products, which purchases a range of refined products, such as heating oil, diesel fuel, residual fuel oil, asphalt, kerosene, jet fuel and gasoline from refining companies, trading organizations and producers; natural gas, which purchases natural gas from natural gas producers and trading companies, and sells and distributes natural gas to commercial and industrial customers in the Northeast and Mid-Atlantic United States; materials handling, which offloads, stores and prepares for delivery a range of customer-owned products, including asphalt, clay slurry, coal and heavy equipment, and other operations, which include the purchase and distribution of coal, certain commercial trucking activities and the heating equipment service business.
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