Longwei Petroleum Investment (OTCMKTS:LPIH) and Martin Midstream Partners (NASDAQ:MMLP) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Insider and Institutional Ownership
28.9% of Martin Midstream Partners shares are owned by institutional investors. 66.1% of Longwei Petroleum Investment shares are owned by insiders. Comparatively, 17.0% of Martin Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Longwei Petroleum Investment and Martin Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Longwei Petroleum Investment||N/A||N/A||N/A|
|Martin Midstream Partners||6.19%||5.03%||1.20%|
Earnings and Valuation
This table compares Longwei Petroleum Investment and Martin Midstream Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Longwei Petroleum Investment||N/A||N/A||N/A||N/A||N/A|
|Martin Midstream Partners||$946.12 million||0.51||$17.13 million||$0.44||28.07|
Martin Midstream Partners has higher revenue and earnings than Longwei Petroleum Investment.
This is a breakdown of current ratings and target prices for Longwei Petroleum Investment and Martin Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Longwei Petroleum Investment||0||0||0||0||N/A|
|Martin Midstream Partners||0||3||2||0||2.40|
Martin Midstream Partners has a consensus target price of $16.20, indicating a potential upside of 31.17%. Given Martin Midstream Partners’ higher probable upside, analysts clearly believe Martin Midstream Partners is more favorable than Longwei Petroleum Investment.
Martin Midstream Partners pays an annual dividend of $2.00 per share and has a dividend yield of 16.2%. Longwei Petroleum Investment does not pay a dividend. Martin Midstream Partners pays out 454.5% 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 beats Longwei Petroleum Investment on 8 of the 10 factors compared between the two stocks.
About Longwei Petroleum Investment
Longwei Petroleum Investment Holding Limited, an energy company, engages in the wholesale distribution of finished petroleum products in the People's Republic of China. The company is involved in the transportation, storage, and sale of finished petroleum products, including diesel, gasoline, fuel oil, and solvents from various petroleum refineries. It also acts as a purchasing agent for other intermediaries; and operates two retail gas stations, which sells diesel and gasoline. The company markets its products to commercial, industrial, retail, and wholesale customers, including transportation companies, coal mining operators, power suppliers, large-scale gas stations, and small and independent gas stations. Longwei Petroleum Investment Holding Limited was founded in 1995 and is headquartered in Taiyuan, the People's Republic of China.
About Martin Midstream Partners
Martin Midstream Partners L.P. collects, transports, stores, and markets petroleum products and by-products in the United States Gulf Coast region. The company's Terminalling and Storage segment owns or operates 22 marine shore-based terminal facilities and 16 specialty terminal facilities that provide storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products. This segment also offers land rental services to oil and gas companies, as well as storage and handling services for lubricants and fuels. Its Natural Gas Services segment distributes natural gas liquids (NGLs) to propane retailers, refineries, and industrial NGL users. This segment owns a NGL pipeline covering an area of approximately 200 miles from Kilgore, Texas to Beaumont, Texas; and 2.4 million barrels of underground storage capacity for NGLs. It also develops, constructs, operates, and manages natural gas storage facilities in northern Louisiana and Mississippi. The company's Sulfur Services segment manufactures and markets various sulfur-based fertilizer and related sulfur products, including plant nutrient and agricultural ground sulfur products; ammonium sulfate products; industrial sulfur products; and liquid sulfur products. This segment owns 26 railcars and leases 76 railcars to transport molten sulfur; and leases 132 railcars to transport fertilizer products. Its Marine Transportation segment operates 33 inland marine tank barges, 18 inland push boats, and 1 offshore tug and barge units that transport petroleum products and by-products to oil and gas refining companies, and petroleum marketing companies. Martin Midstream GP LLC serves as a general partner of the company. The company was founded in 2002 and is based in Kilgore, Texas.
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