Western Refining Logistics (NYSE: WNRL) and World Point Terminals (NYSE:WPT) are both small-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Valuation & Earnings
This table compares Western Refining Logistics and World Point Terminals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western Refining Logistics||N/A||N/A||N/A||$1.07||22.29|
|World Point Terminals||N/A||N/A||N/A||$1.04||16.63|
This is a breakdown of current ratings and recommmendations for Western Refining Logistics and World Point Terminals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Refining Logistics||0||1||0||0||2.00|
|World Point Terminals||0||2||0||0||2.00|
World Point Terminals has a consensus price target of $17.00, suggesting a potential downside of 1.68%. Given World Point Terminals’ higher possible upside, analysts clearly believe World Point Terminals is more favorable than Western Refining Logistics.
Western Refining Logistics pays an annual dividend of $1.87 per share and has a dividend yield of 7.8%. World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Western Refining Logistics pays out 174.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. World Point Terminals pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Refining Logistics has raised its dividend for 3 consecutive years. Western Refining Logistics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Western Refining Logistics has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, World Point Terminals has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.
This table compares Western Refining Logistics and World Point Terminals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Refining Logistics||3.05%||78.84%||12.72%|
|World Point Terminals||37.15%||19.57%||18.37%|
Insider and Institutional Ownership
40.1% of Western Refining Logistics shares are held by institutional investors. Comparatively, 13.2% of World Point Terminals shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Western Refining Logistics beats World Point Terminals on 7 of the 11 factors compared between the two stocks.
Western Refining Logistics Company Profile
Western Refining Logistics, LP owns, operates, develops, and acquires logistics and related assets and businesses to include terminals, storage tanks, pipelines and other logistics assets related to the terminaling, transportation, storage and distribution of crude oil and refined products. The Company’s segments include logistics and wholesale. The Company operates its logistics business and wholesale business under commercial and service agreements with Western Refining, Inc. (Western). Its logistics assets consist of pipeline and gathering infrastructure and terminalling, transportation and storage assets in the Southwest and the Upper Great Plains region. Its wholesale business purchases its petroleum fuels from Western, and its lubricants and additional petroleum fuels from third-party suppliers.
World Point Terminals Company Profile
World Point Terminals, LP owns, operates, develops and acquires liquid bulk storage terminals and other assets relating to the storage of petroleum products, including light refined products, heavy refined products and crude oil. The Company operates fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States. As of December 31, 2016, through its subsidiary, Center Point Terminal Company, LLC (Center Point), the Company owned and operated 15.6 million barrels of tankage at terminals, which are located in the East Coast, Gulf Coast and Midwest regions of the United States. The Company’s terminal facilities are located on waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with loading logistics. Its terminal facilities also have rail or pipeline access.
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