Valero Energy Partners (NYSE: VLP) and VTTI Energy Partners (NYSE:VTTI) are both oil & gas transportation services – nec companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Valero Energy Partners pays an annual dividend of $1.92 per share and has a dividend yield of 4.6%. VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Valero Energy Partners pays out 67.8% of its earnings in the form of a dividend. VTTI Energy Partners pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Valero Energy Partners has raised its dividend for 2 consecutive years and VTTI Energy Partners has raised its dividend for 2 consecutive years.
This table compares Valero Energy Partners and VTTI Energy Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Valero Energy Partners||$362.62 million||7.96||$188.83 million||$2.83||14.67|
|VTTI Energy Partners||N/A||N/A||N/A||$0.81||24.07|
Valero Energy Partners has higher revenue and earnings than VTTI Energy Partners. Valero Energy Partners is trading at a lower price-to-earnings ratio than VTTI Energy Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Valero Energy Partners and VTTI Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Valero Energy Partners||54.43%||184.08%||22.28%|
|VTTI Energy Partners||35.11%||8.09%||7.61%|
Institutional and Insider Ownership
30.2% of Valero Energy Partners shares are held by institutional investors. Comparatively, 74.5% of VTTI Energy Partners shares are held by institutional investors. 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.
Risk & Volatility
Valero Energy Partners has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, VTTI Energy Partners has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
This is a summary of recent recommendations for Valero Energy Partners and VTTI Energy Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valero Energy Partners||0||2||6||0||2.75|
|VTTI Energy Partners||0||3||0||0||2.00|
Valero Energy Partners presently has a consensus target price of $53.14, suggesting a potential upside of 28.02%. VTTI Energy Partners has a consensus target price of $19.50, suggesting a potential upside of 0.00%. Given Valero Energy Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Valero Energy Partners is more favorable than VTTI Energy Partners.
Valero Energy Partners beats VTTI Energy Partners on 9 of the 12 factors compared between the two stocks.
About Valero Energy Partners
Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.
About VTTI Energy Partners
VTTI Energy Partners LP provides terminaling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. The Company operates through the segment of energy storage terminaling business. Its assets consist of approximately 42.6% interest in VTTI MLP B.V., which owns a portfolio of over six terminals with over 400 tanks and approximately 35.7 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America. Its terminals are located in international supply and demand centers for refined petroleum products and crude oil and provide midstream infrastructure services to its customers at these international market hubs. It provides storage and terminaling services for energy industry participants, including marketing companies, integrated oil companies, national oil companies, distributors, and chemical and petrochemical companies.
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