CrossAmerica Partners (NYSE: CAPL) and Global Partners (NYSE:GLP) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Earnings and Valuation
This table compares CrossAmerica Partners and Global Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CrossAmerica Partners||$1.89 billion||0.47||$72.56 million||($0.03)||-874.71|
|Global Partners||$8.70 billion||0.07||$235.69 million||($4.73)||-3.67|
Global Partners has higher revenue and earnings than CrossAmerica Partners. CrossAmerica Partners is trading at a lower price-to-earnings ratio than Global Partners, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CrossAmerica Partners has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Global Partners has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Insider and Institutional Ownership
37.2% of CrossAmerica Partners shares are owned by institutional investors. Comparatively, 47.3% of Global Partners shares are owned by institutional investors. 41.5% of Global Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for CrossAmerica Partners and Global Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CrossAmerica Partners currently has a consensus price target of $30.40, suggesting a potential upside of 15.81%. Global Partners has a consensus price target of $18.00, suggesting a potential upside of 3.75%. Given CrossAmerica Partners’ stronger consensus rating and higher probable upside, equities analysts plainly believe CrossAmerica Partners is more favorable than Global Partners.
CrossAmerica Partners pays an annual dividend of $2.49 per share and has a dividend yield of 9.5%. Global Partners pays an annual dividend of $1.85 per share and has a dividend yield of 10.7%. CrossAmerica Partners pays out -8,297.2% of its earnings in the form of a dividend. Global Partners pays out -39.1% 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.
This table compares CrossAmerica Partners and Global Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CrossAmerica Partners beats Global Partners on 10 of the 16 factors compared between the two stocks.
About CrossAmerica Partners
CrossAmerica Partners LP is a limited partnership engaged in the wholesale distribution of motor fuel, and the ownership and leasing of real estate used in the retail distribution of motor fuel. The Company operates in two segments: wholesale and retail. The wholesale segment is engaged in the wholesale distribution of motor fuel to lessee dealers, independent dealers, commission agents, Dunne Manning Stores LLC (DMS), CST Brands, Inc. and subsidiaries (CST) and company operated retail sites. The Retail segment owns or leases and operates retail sites. As of December 31, 2016, it distributed motor fuels to approximately 1,200 sites located in 29 states (Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Virginia, West Virginia and Wisconsin).
About Global Partners
Global Partners LP is a midstream logistics and marketing company. It is engaged in the purchasing, selling, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, natural gas and propane. Its segments include Wholesale, Gasoline Distribution and Station Operations and Commercial. In Wholesale segment, the Company engages in the logistics of selling, gathering, storage and transportation of refined petroleum products, renewable fuels, crude oil and propane. In Gasoline Distribution and Station Operations segment, gasoline distribution includes sales of branded and unbranded gasoline to gasoline station operators and sub-jobbers. The Commercial segment includes sales and deliveries to end user customers in the public sector and to commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil, bunker fuel and natural gas.
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