Global Partners (GLP) & The Competition Financial Analysis

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

Profitability

This table compares Global Partners and its rivals’ 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%
Global Partners Competitors	-456.99%	19.35%	6.42%

Volatility & Risk

Global Partners has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Global Partners’ rivals have a beta of -3.76, suggesting that their average stock price is 476% less volatile than the S&P 500.

Earnings and Valuation

This table compares Global Partners and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Global Partners	$18.56 billion	$79.22 million	7.57
Global Partners Competitors	$10.88 billion	$5.51 billion	-0.92

Global Partners has higher revenue, but lower earnings than its rivals. Global Partners is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Global Partners and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Partners	0	2	1	0	2.33
Global Partners Competitors	5982	26999	40864	2423	2.52

Global Partners currently has a consensus price target of $46.00, suggesting a potential upside of 10.31%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.64%. Given Global Partners’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Global Partners has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

38.1% of Global Partners shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 41.5% of Global Partners shares are held by insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers 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 7.5%. Global Partners pays out 56.6% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.1% and pay out -133.8% of their earnings in the form of a dividend. Global Partners has raised its dividend for 5 consecutive years. Global Partners lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Global Partners rivals beat Global Partners on 8 of the 15 factors compared.

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.