Head-To-Head Analysis: Global Partners (NYSE:GLP) and OMV (OTCMKTS:OMVKY)

Global Partners (NYSE:GLP) and OMV (OTCMKTS:OMVKY) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

38.1% of Global Partners shares are held by institutional investors. 41.5% of Global Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 6.7%. OMV pays an annual dividend of $0.61 per share and has a dividend yield of 3.0%. Global Partners pays out 63.5% of its earnings in the form of a dividend. OMV pays out 6.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Partners has raised its dividend for 5 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Global Partners and OMV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Partners	0	2	1	0	2.33
OMV	4	2	0	1	1.71

Global Partners presently has a consensus price target of $46.00, suggesting a potential downside of 0.90%. Given Global Partners’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Global Partners is more favorable than OMV.

Valuation and Earnings

This table compares Global Partners and OMV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Partners	$18.56 billion	0.09	$79.22 million	$4.91	9.45
OMV	$28.41 billion	0.93	$1.22 billion	$9.45	2.14

OMV has higher revenue and earnings than Global Partners. OMV is trading at a lower price-to-earnings ratio than Global Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Global Partners and OMV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Partners	0.91%	30.87%	4.92%
OMV	9.92%	10.95%	5.42%

Risk and Volatility

Global Partners has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, OMV has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Summary

Global Partners beats OMV on 10 of the 18 factors compared between the two stocks.

About Global Partners

Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through 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, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its 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. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.

About OMV

OMV Aktiengesellschaft operates as an energy and chemicals company in Austria, Germany, Romania, Norway, Belgium, New Zealand, the United Arab Emirates, the rest of Central and Eastern Europe, the rest of Europe, and internationally. It operates through three segments: Chemicals & Materials, Fuels & Feedstock, and Energy. The company engages in the exploration, development, and production of oil and gas in the regions of Central and Eastern Europe, the Middle East and Africa, the North Sea, and the Asia Pacific; and refining and marketing of fuels and feedstock, as well as supply, marketing, trading, and logistics of gas in Romania and Turkey. In addition, the company provides advanced and circular polyolefin solutions, and base chemicals, as well as engages in the recycling of plastics. It has refineries in Europe, Schwechat, and Burghausen; filling stations in eight European countries; and gas storage facilities in Austria and Germany, as well as a gas-fired power plant in Romania. The company was founded in 1956 and is headquartered in Vienna, Austria.