Williams Partners (NYSE: WPZ) and MV Oil Trust (NYSE:MVO) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
This table compares Williams Partners and MV Oil Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MV Oil Trust||90.79%||N/A||46.18%|
Williams Partners pays an annual dividend of $2.40 per share and has a dividend yield of 6.8%. MV Oil Trust pays an annual dividend of $0.88 per share and has a dividend yield of 11.5%. Williams Partners pays out 258.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MV Oil Trust pays out 115.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MV Oil Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
22.1% of Williams Partners shares are owned by institutional investors. Comparatively, 12.1% of MV Oil Trust shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent recommendations for Williams Partners and MV Oil Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MV Oil Trust||0||0||0||0||N/A|
Williams Partners currently has a consensus price target of $46.01, indicating a potential upside of 30.25%. Given Williams Partners’ higher probable upside, equities research analysts plainly believe Williams Partners is more favorable than MV Oil Trust.
Volatility and Risk
Williams Partners has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, MV Oil Trust has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.
Valuation & Earnings
This table compares Williams Partners and MV Oil Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Williams Partners||$8.01 billion||4.30||$871.00 million||$0.93||37.98|
|MV Oil Trust||$9.11 million||9.66||$8.28 million||$0.76||10.07|
Williams Partners has higher revenue and earnings than MV Oil Trust. MV Oil Trust is trading at a lower price-to-earnings ratio than Williams Partners, indicating that it is currently the more affordable of the two stocks.
Williams Partners beats MV Oil Trust on 9 of the 14 factors compared between the two stocks.
Williams Partners Company Profile
Williams Partners L.P. is an energy infrastructure company. The Company has operations across the natural gas value chain from gathering, processing, and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene, and other olefins. It operates through its Northeast G&P, Atlantic-Gulf, West segment. Under the Northeast G&P segment, it owns and operates fractionation facilities at Moundsville, de-ethanization and condensate facilities at its Oak Grove processing plant. The Atlantic Gulf segment includes the Company’s interstate natural gas pipeline, Transcontinental Gas Pipe Line Company, LLC. The West segment includes its interstate natural gas pipeline, Northwest Pipeline, and natural gas gathering processing and treating operations.
MV Oil Trust Company Profile
MV Oil Trust (the Trust) is a statutory trust. The Trust acquires and holds a term net profits interest for the benefit of the Trust unitholders. Its underlying properties consist of MV Partners, LLC’s (MV Partners) net interests in all of its oil and natural gas properties, which are located in the Mid-Continent region in the States of Kansas and Colorado. These oil and gas properties include approximately 1,000 producing oil and gas wells. The underlying properties located in the El Dorado Area are operated on behalf of MV Partners by Vess Oil Corporation (Vess Oil) and are located in the El Dorado, Augusta and Valley Center Fields. Each of Vess Oil and Murfin Drilling Company, Inc. (Murfin Drilling) operate leases on behalf of MV Partners included in the underlying properties that are located in the Northwest Kansas Area. The primary fields in this area are the Bemis-Shutts, Trapp, Ray and Hansen Fields.
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