Southcross Energy Partners (NYSE: SXE) and Plains GP (NYSE:PAGP) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
This is a summary of current recommendations and price targets for Southcross Energy Partners and Plains GP, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Southcross Energy Partners||0||1||0||0||2.00|
Volatility & Risk
Southcross Energy Partners has a beta of 3.99, meaning that its stock price is 299% more volatile than the S&P 500. Comparatively, Plains GP has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
Institutional and Insider Ownership
3.0% of Southcross Energy Partners shares are owned by institutional investors. Comparatively, 83.0% of Plains GP shares are owned by institutional investors. 23.8% of Southcross Energy Partners shares are owned by company insiders. Comparatively, 39.9% of Plains GP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Plains GP pays an annual dividend of $1.20 per share and has a dividend yield of 5.0%. Southcross Energy Partners does not pay a dividend. Plains GP pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southcross Energy Partners has raised its dividend for 4 consecutive years and Plains GP has raised its dividend for 3 consecutive years.
This table compares Southcross Energy Partners and Plains GP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Southcross Energy Partners||-13.74%||-16.59%||-7.83%|
Valuation & Earnings
This table compares Southcross Energy Partners and Plains GP’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southcross Energy Partners||$548.72 million||0.28||-$94.94 million||($1.63)||-1.20|
|Plains GP||$20.18 billion||0.19||$94.00 million||$0.45||53.65|
Plains GP has higher revenue and earnings than Southcross Energy Partners. Southcross Energy Partners is trading at a lower price-to-earnings ratio than Plains GP, indicating that it is currently the more affordable of the two stocks.
Plains GP beats Southcross Energy Partners on 13 of the 17 factors compared between the two stocks.
Southcross Energy Partners Company Profile
Southcross Energy Partners, L.P. provides natural gas gathering, processing, treating, compression and transportation services and natural gas liquid (NGL) fractionation and transportation services. The Company also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama As of December 31, 2016, its assets consisted of gathering systems, intrastate pipelines, two natural gas processing plants, one fractionation facility, 20 compressor stations and a treating system. Its gathering systems and intrastate pipelines include South Texas and Mississippi/Alabama. The assets in its South Texas region are located between Montgomery County, which is north of Houston, and Webb and Dimmit Counties near the Texas-Mexico border. The assets in its Mississippi region are located principally in the southern half of the state and consist of intrastate pipeline system in Mississippi.
Plains GP Company Profile
Plains GP Holdings, L.P. owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The Company operates through three segments: Transportation, Facilities, and Supply and Logistics. Through its three business segments, the Company is engaged in the transportation, storage, terminaling and marketing of crude oil, NGL and natural gas. The Transportation segment operations consist of fee-based activities associated with transporting crude oil and NGL on pipelines, gathering systems, trucks and barges. The Facilities segment operations consist of fee-based activities associated with providing storage, terminaling and throughput services for crude oil, refined products, NGL and natural gas, as well as NGL fractionation and isomerization services and natural gas and condensate processing services. The Supply and Logistics segment operations consist of the merchant-related activities.
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