Critical Comparison: Markwest Energy Partners (MWE) & Sasol (SSL)

Markwest Energy Partners (NYSE: MWE) and Sasol (NYSE:SSL) are both mid-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Valuation & Earnings

This table compares Markwest Energy Partners and Sasol’s gross revenue, earnings per share (EPS) 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
Sasol $12.83 billion 1.50 $3.78 billion N/A N/A

Sasol has higher revenue and earnings than Markwest Energy Partners.

Insider & Institutional Ownership

1.8% of Sasol shares are held by institutional investors. 1.0% of Sasol shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Markwest Energy Partners and Sasol’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%
Sasol N/A N/A N/A

Dividends

Sasol pays an annual dividend of $0.83 per share and has a dividend yield of 2.8%. Markwest Energy Partners does not pay a dividend. Sasol has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Markwest Energy Partners and Sasol, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Markwest Energy Partners 0 0 0 0 N/A
Sasol 0 1 3 0 2.75

Summary

Sasol beats Markwest Energy Partners on 6 of the 9 factors compared between the two stocks.

Markwest Energy Partners Company Profile

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.

Sasol Company Profile

Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.

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