Head to Head Analysis: Semgroup Corporation (SEMG) and Western Refining Logistics, (WNRL)

Semgroup Corporation (NYSE: SEMG) and Western Refining Logistics, (NYSE:WNRL) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Earnings and Valuation

This table compares Semgroup Corporation and Western Refining Logistics,’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Semgroup Corporation $1.66 billion 1.23 $147.28 million $0.03 868.33
Western Refining Logistics, $2.41 billion 0.60 $128.20 million $1.00 23.85

Semgroup Corporation has higher revenue, but lower earnings than Western Refining Logistics,. Western Refining Logistics, is trading at a lower price-to-earnings ratio than Semgroup Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Semgroup Corporation and Western Refining Logistics,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semgroup Corporation 0.24% 3.46% 1.60%
Western Refining Logistics, 3.05% 78.84% 12.72%

Dividends

Semgroup Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 6.9%. Western Refining Logistics, pays an annual dividend of $1.87 per share and has a dividend yield of 7.8%. Semgroup Corporation pays out 6,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Refining Logistics, pays out 187.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Semgroup Corporation has raised its dividend for 2 consecutive years and Western Refining Logistics, has raised its dividend for 3 consecutive years. Western Refining Logistics, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

92.3% of Semgroup Corporation shares are owned by institutional investors. Comparatively, 40.1% of Western Refining Logistics, shares are owned by institutional investors. 0.8% of Semgroup Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Semgroup Corporation has a beta of 2.04, meaning that its share price is 104% more 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.

Analyst Ratings

This is a breakdown of recent ratings for Semgroup Corporation and Western Refining Logistics,, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semgroup Corporation 0 4 1 0 2.20
Western Refining Logistics, 0 1 1 0 2.50

Semgroup Corporation presently has a consensus price target of $32.75, suggesting a potential upside of 25.72%. Western Refining Logistics, has a consensus price target of $35.00, suggesting a potential upside of 46.75%. Given Western Refining Logistics,’s stronger consensus rating and higher possible upside, analysts clearly believe Western Refining Logistics, is more favorable than Semgroup Corporation.

Summary

Western Refining Logistics, beats Semgroup Corporation on 10 of the 16 factors compared between the two stocks.

About Semgroup Corporation

SemGroup Corporation is a provider of gathering, transportation, storage, distribution, marketing and other midstream services to producers, refiners of petroleum products and other market participants located in the Midwest and Rocky Mountain regions of the United States and Canada. The Company’s segments include Crude Transportation, which operates crude oil pipelines and truck transportation businesses in the United States; Crude Facilities, which operates crude oil storage and terminal businesses in the United States; Crude Supply and Logistics, which operates a crude oil marketing business; SemGas, which provides natural gas gathering and processing services; SemCAMS, which operates natural gas processing and gathering facilities in Alberta, Canada; SemLogistics, which owns petroleum products storage facility in the United Kingdom, and SemMexico, which provides liquid asphalt cement products and product application services to the Mexican market, and Corporate and Other.

About Western Refining Logistics,

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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