Markwest Energy Partners (MWE) vs. BP p.l.c. (BP) Critical Contrast

Markwest Energy Partners (NYSE: MWE) and BP p.l.c. (NYSE:BP) are both mid-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Dividends

BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.2%. Markwest Energy Partners does not pay a dividend. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Markwest Energy Partners has raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

10.1% of BP p.l.c. shares are held by institutional investors. 1.0% of BP p.l.c. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Markwest Energy Partners and BP p.l.c.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Markwest Energy Partners N/A N/A N/A N/A N/A
BP p.l.c. $209.85 billion 0.60 $19.97 billion $1.15 33.27

BP p.l.c. has higher revenue and earnings than Markwest Energy Partners.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Markwest Energy Partners and BP p.l.c., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Markwest Energy Partners 0 0 0 0 N/A
BP p.l.c. 2 6 12 0 2.50

BP p.l.c. has a consensus price target of $36.58, indicating a potential downside of 4.40%. Given BP p.l.c.’s higher possible upside, analysts plainly believe BP p.l.c. is more favorable than Markwest Energy Partners.

Profitability

This table compares Markwest Energy Partners and BP p.l.c.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Markwest Energy Partners 10.37% 2.42% 1.71%
BP p.l.c. 1.74% 3.64% 1.34%

Summary

BP p.l.c. beats Markwest Energy Partners on 7 of the 11 factors compared between the two stocks.

About Markwest Energy Partners

MarkWest Energy Partners, L.P. (MarkWest) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. The Company operates in four segments: Marcellus, Utica, Northeast and Southwest. The Marcellus segment provides integrated natural gas midstream services in southwestern Pennsylvania and northern West Virginia. The Company’s MarkWest Utica EMG provides gathering, processing, fractionation and marketing services. The Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing complexes, an NGL pipeline and the Siloam fractionation facility. The Company owns a system that consists of natural gas gathering pipelines, centralized compressor stations, two natural gas processing complexes and two NGL pipelines.

About BP p.l.c.

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

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