Targa Pipeline Partners (NYSE: APL) and Schlumberger (NYSE:SLB) are both oil related services and equipment – nec companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This table compares Targa Pipeline Partners and Schlumberger’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Targa Pipeline Partners||14.09%||17.87%||9.56%|
Schlumberger pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. Targa Pipeline Partners does not pay a dividend. Schlumberger pays out -183.5% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Targa Pipeline Partners and Schlumberger, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Targa Pipeline Partners||0||0||0||0||N/A|
Schlumberger has a consensus target price of $79.96, suggesting a potential upside of 23.43%. Given Schlumberger’s higher possible upside, analysts plainly believe Schlumberger is more favorable than Targa Pipeline Partners.
Earnings and Valuation
This table compares Targa Pipeline Partners and Schlumberger’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Targa Pipeline Partners||N/A||N/A||N/A||$0.89||30.02|
|Schlumberger||$30.44 billion||2.95||-$1.51 billion||($1.09)||-59.43|
Targa Pipeline Partners has higher earnings, but lower revenue than Schlumberger. Schlumberger is trading at a lower price-to-earnings ratio than Targa Pipeline Partners, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
79.9% of Schlumberger shares are held by institutional investors. 0.5% of Schlumberger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Schlumberger beats Targa Pipeline Partners on 7 of the 12 factors compared between the two stocks.
About Targa Pipeline Partners
Targa Pipeline Partners, L.P. (the Partnership), formerly Atlas Pipeline Partners, L.P., was formed by its parent, Targa Resources Corp., to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The Partnership is a provider of midstream natural gas, natural gas liquids (NGL), terminaling and crude oil gathering services in the United States. The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products.
Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. The Drilling Group consists of the principal technologies involved in the drilling and positioning of oil and gas wells. The Production Group consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Integrated Production Services (IPS) and Schlumberger Production Management (SPM). The Cameron Group consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.
Receive News & Ratings for Targa Pipeline Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Targa Pipeline Partners and related companies with MarketBeat.com's FREE daily email newsletter.