Analyzing Hi Crush Partners (HCLP) and The Competition

Hi Crush Partners (NYSE: HCLP) is one of 21 publicly-traded companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it compare to its peers? We will compare Hi Crush Partners to similar companies based on the strength of its dividends, institutional ownership, risk, profitability, analyst recommendations, valuation and earnings.

Valuation and Earnings

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This table compares Hi Crush Partners and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hi Crush Partners $602.62 million $82.53 million 11.53
Hi Crush Partners Competitors $1.87 billion $261.07 million 14.92

Hi Crush Partners’ peers have higher revenue and earnings than Hi Crush Partners. Hi Crush Partners is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Hi Crush Partners pays an annual dividend of $0.80 per share and has a dividend yield of 6.9%. Hi Crush Partners pays out 79.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies pay a dividend yield of 2.0% and pay out 46.8% of their earnings in the form of a dividend. Hi Crush Partners has increased its dividend for 5 consecutive years.

Profitability

This table compares Hi Crush Partners and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hi Crush Partners 13.70% 11.32% 8.07%
Hi Crush Partners Competitors 8.93% 9.40% 4.85%

Institutional & Insider Ownership

34.0% of Hi Crush Partners shares are owned by institutional investors. Comparatively, 59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by institutional investors. 34.8% of Hi Crush Partners shares are owned by company insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Hi Crush Partners has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Hi Crush Partners’ peers have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Hi Crush Partners and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hi Crush Partners 0 2 11 0 2.85
Hi Crush Partners Competitors 195 701 862 28 2.40

Hi Crush Partners currently has a consensus target price of $16.15, indicating a potential upside of 38.66%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 20.33%. Given Hi Crush Partners’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Hi Crush Partners is more favorable than its peers.

Summary

Hi Crush Partners beats its peers on 9 of the 15 factors compared.

Hi Crush Partners Company Profile

Hi-Crush Partners LP, together with its subsidiaries, provides proppant and logistics solutions to the energy industry in North America. The company produces monocrystalline sand, a specialized mineral used as a proppant during the well completion process to facilitate the recovery of hydrocarbons from oil and natural gas wells. It owns, operates, and develops sand reserves, and excavation and processing facilities, which include 1,447-acre facility with integrated rail infrastructure, located near Independence, Wisconsin and Whitehall, Wisconsin; 971-acre facility with integrated rail infrastructure, located in Wyeville, Wisconsin; 1,187-acre Augusta facility with integrated rail infrastructure, situated in Eau Claire County, Wisconsin; and 1,285-acre facility with integrated rail infrastructure, located near Blair, Wisconsin. The company offers raw frac sand used in hydraulic fracturing process for oil and natural gas wells. It primarily serves pressure pumping service providers, and oil and gas exploration and production companies. Hi-Crush GP LLC operates as the general partner of the company. Hi-Crush Partners LP was founded in 2012 and is based in Houston, Texas.

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