Shell Midstream Partners (NYSE: SHLX) and Andeavor Logistics (NYSE:ANDX) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
This is a summary of current ratings and price targets for Shell Midstream Partners and Andeavor Logistics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Shell Midstream Partners||0||3||3||0||2.50|
Risk & Volatility
Shell Midstream Partners has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Andeavor Logistics has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
Valuation and Earnings
This table compares Shell Midstream Partners and Andeavor Logistics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shell Midstream Partners||$470.10 million||12.09||$372.60 million||$1.28||19.84|
|Andeavor Logistics||$3.21 billion||3.21||$373.00 million||$2.33||20.40|
Andeavor Logistics has higher revenue and earnings than Shell Midstream Partners. Shell Midstream Partners is trading at a lower price-to-earnings ratio than Andeavor Logistics, indicating that it is currently the more affordable of the two stocks.
This table compares Shell Midstream Partners and Andeavor Logistics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Shell Midstream Partners||78.08%||-179.87%||26.36%|
Shell Midstream Partners pays an annual dividend of $1.33 per share and has a dividend yield of 5.2%. Andeavor Logistics pays an annual dividend of $4.00 per share and has a dividend yield of 8.4%. Shell Midstream Partners pays out 103.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Andeavor Logistics pays out 171.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Andeavor Logistics has increased its dividend for 2 consecutive years. Andeavor Logistics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
45.0% of Shell Midstream Partners shares are held by institutional investors. Comparatively, 40.1% of Andeavor Logistics shares are held by institutional investors. 0.2% of Andeavor Logistics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Andeavor Logistics beats Shell Midstream Partners on 11 of the 17 factors compared between the two stocks.
About Shell Midstream Partners
Shell Midstream Partners, L.P. is a master limited partnership company, which owns, operates, develops and acquires pipelines and other midstream assets. The Company conducts its operations through its subsidiary, Shell Midstream Operating, LLC. Its assets consist of interests in entities that own crude oil and refined products pipelines serving as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from those markets to demand centers. As of December 31, 2016, it owned interests in seven crude oil pipeline systems, three refined products systems, one natural gas gathering pipeline system and a crude tank storage and terminal system. Its pipeline and terminal systems include Zydeco crude oil system, Auger crude oil system, Mars crude oil system, Bengal product system, Poseidon crude oil system, Odyssey crude oil system, Proteus crude oil system and Endymion crude oil system.
About Andeavor Logistics
Andeavor Logistics LP, formerly Tesoro Logistics LP, is a full-service logistics company operating in the western and mid-continent regions of the United States. The Company operates through three segments. Its Gathering segment consists of crude oil, natural gas and produced water gathering systems in the Bakken Region and Rockies Region. Its Processing segment consists of the Vermillion processing complex, the Uinta Basin processing complex, the Blacks Fork processing complex and the Emigrant Trail processing complex. Its Terminalling and Transportation segment consists of the Northwest Products Pipeline, which includes a regulated common carrier products, a regulated common carrier refined products pipeline system connecting Tesoro Corporation’s Kenai refinery to Anchorage, Alaska, and crude oil and refined products terminals and storage facilities in the western and midwestern United States; marine terminals in California; a petroleum coke handling and storage facility.
Receive News & Ratings for Shell Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shell Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.