Sprague Resources (NYSE: SRLP) and Global Partners (NYSE:GLP) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.
Institutional and Insider Ownership
21.9% of Sprague Resources shares are owned by institutional investors. Comparatively, 41.5% of Global Partners shares are owned by institutional investors. 41.5% of Global Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Sprague Resources and Global Partners’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility and Risk
Sprague Resources has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Global Partners has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Sprague Resources pays an annual dividend of $2.55 per share and has a dividend yield of 10.9%. Global Partners pays an annual dividend of $1.85 per share and has a dividend yield of 11.0%. Sprague Resources pays out 225.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Partners pays out 133.1% 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 has increased its dividend for 3 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings for Sprague Resources and Global Partners, as reported by MarketBeat.com.
||Strong Buy Ratings
Sprague Resources presently has a consensus price target of $27.00, suggesting a potential upside of 15.88%. Global Partners has a consensus price target of $17.67, suggesting a potential upside of 5.47%. Given Sprague Resources’ higher possible upside, equities analysts clearly believe Sprague Resources is more favorable than Global Partners.
Earnings & Valuation
This table compares Sprague Resources and Global Partners’ revenue, earnings per share and valuation.
||Earnings Per Share
Global Partners has higher revenue and earnings than Sprague Resources. Global Partners is trading at a lower price-to-earnings ratio than Sprague Resources, indicating that it is currently the more affordable of the two stocks.
Sprague Resources beats Global Partners on 9 of the 16 factors compared between the two stocks.
About Sprague Resources
Sprague Resources LP engages in the purchase, storage, distribution, and sale of refined petroleum products and natural gas in the United States. The company operates through four segments: Refined Products, Natural Gas, Materials Handling, and Other Operations. The Refined Products segment purchases and sells various refined products, such as heating oil, diesel fuel, residual fuel oil, kerosene, jet fuel, gasoline, and asphalt to wholesale, retail, and commercial customers. This segment's wholesale customers consist of approximately 1,200 home heating oil retailers, and diesel fuel and gasoline resellers; and commercial customers include federal and state agencies, municipalities, regional transit authorities, drill sites, large industrial companies, real estate management companies, hospitals, educational institutions, and asphalt paving companies. The Natural Gas segment purchases, sells, and distributes natural gas to approximately 16,000 commercial and industrial customer locations in 13 states in the Northeast and Mid-Atlantic United States. The Materials Handling segment offloads, stores, and prepares for the delivery of various customer-owned products, including asphalt, crude oil, clay slurry, salt, gypsum, residual fuel, coal, petroleum coke, caustic soda, tallow, pulp, and heavy equipment. The Other Operations segment engages in coal marketing and distribution; commercial trucking; and heating equipment service activities. The company owns, operates, and/or controls a network of refined products and materials handling terminals located throughout the Northeast United States, as well as in Quebec, Canada that have a combined storage capacity of approximately 14.7 million barrels for refined products and other liquid materials, as well as 2.0 million square feet of materials handling capacity. Sprague Resources LP was founded in 1870 and is headquartered in Portsmouth, New Hampshire.
About Global Partners
Global Partners LP, a midstream logistics and marketing company, distributes gasoline, distillates, residual oil, and renewable fuels to wholesalers, retailers, and commercial customers in the New England states and New York. It operates in three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, residual oil, and propane to home heating oil and propane retailers, and wholesale distributors. It also aggregates crude oil through truck or pipeline in the mid-continent region of the United States and Canada for distribution to refiners and other customers. The Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. As of December 31, 2017, this segment had a portfolio of 1,455 owned, leased, and/or supplied gasoline stations, which included 264 convenience stores in the Northeast, Maryland, and Virginia. The Commercial segment delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, bunker fuel, and natural gas to end user customers in the public sector, as well as to commercial and industrial end users; and sells custom blended fuels. The company also owns, leases, or maintains storage facilities at 24 bulk terminals with a collective storage capacity of 10.1 million barrels. Global GP LLC serves as the general partner of the company. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.
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