Reviewing CrossAmerica Partners (CAPL) and Its Competitors

CrossAmerica Partners (NYSE:CAPL) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its competitors? We will compare CrossAmerica Partners to related companies based on the strength of its risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CrossAmerica Partners and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CrossAmerica Partners	0	1	0	1	3.00
CrossAmerica Partners Competitors	5835	26496	40024	2275	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 29.94%. Given CrossAmerica Partners’ competitors higher probable upside, analysts clearly believe CrossAmerica Partners has less favorable growth aspects than its competitors.

Volatility & Risk

CrossAmerica Partners has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, CrossAmerica Partners’ competitors have a beta of -3.79, indicating that their average share price is 479% less volatile than the S&P 500.

Dividends

CrossAmerica Partners pays an annual dividend of $2.10 per share and has a dividend yield of 9.1%. CrossAmerica Partners pays out 153.3% 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, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 12.7% and pay out -114.3% of their earnings in the form of a dividend. CrossAmerica Partners lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares CrossAmerica Partners and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CrossAmerica Partners	$3.66 billion	$39.11 million	16.80
CrossAmerica Partners Competitors	$10.60 billion	$5.51 billion	2.00

CrossAmerica Partners’ competitors have higher revenue and earnings than CrossAmerica Partners. CrossAmerica Partners is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

24.1% of CrossAmerica Partners shares are held by institutional investors. Comparatively, 30.6% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 52.0% of CrossAmerica Partners shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies 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.

Profitability

This table compares CrossAmerica Partners and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CrossAmerica Partners	1.43%	-37.73%	3.92%
CrossAmerica Partners Competitors	-471.01%	6.93%	6.05%

Summary

CrossAmerica Partners competitors beat CrossAmerica Partners on 9 of the 15 factors compared.

About CrossAmerica Partners

CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, operation of convenience stores, and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States. It operates in two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents, and company operated retail sites. The Retail segment is involved in the sale of convenience merchandise items; and retail sale of motor fuels at company operated retail sites and retail sites operated by commission agents. CrossAmerica GP LLC operates as the general partner of the company. The company was formerly known as Lehigh Gas Partners LP and changed its name to CrossAmerica Partners LP in October 2014. The company was founded in 1992 and is based in Allentown, Pennsylvania.