Markwest Energy Partners (NYSE: MWE) and Arc Logistic Partners (NYSE:ARCX) are both oil & gas refining and marketing – nec companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
This is a breakdown of current ratings for Markwest Energy Partners and Arc Logistic Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Markwest Energy Partners||0||0||0||0||N/A|
|Arc Logistic Partners||0||3||0||0||2.00|
Arc Logistic Partners has a consensus price target of $16.50, suggesting a potential upside of 0.86%. Given Arc Logistic Partners’ higher probable upside, analysts clearly believe Arc Logistic Partners is more favorable than Markwest Energy Partners.
Insider and Institutional Ownership
42.9% of Arc Logistic Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Markwest Energy Partners and Arc Logistic Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Markwest Energy Partners||N/A||N/A||N/A||($0.26)||-160.19|
|Arc Logistic Partners||$105.38 million||3.04||$15.04 million||$0.71||23.04|
Arc Logistic Partners has higher revenue and earnings than Markwest Energy Partners. Markwest Energy Partners is trading at a lower price-to-earnings ratio than Arc Logistic Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Markwest Energy Partners and Arc Logistic Partners’ 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%|
|Arc Logistic Partners||9.13%||3.26%||1.81%|
Arc Logistic Partners pays an annual dividend of $1.76 per share and has a dividend yield of 10.8%. Markwest Energy Partners does not pay a dividend. Arc Logistic Partners pays out 247.9% 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 2 consecutive years and Arc Logistic Partners has raised its dividend for 6 consecutive years.
Arc Logistic Partners beats Markwest Energy Partners on 8 of the 10 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.
Arc Logistic Partners Company Profile
Arc Logistics Partners LP owns, operates, develops and acquires a portfolio of energy logistics assets. The Company is engaged in the terminaling, storage, throughput and transloading of crude oil and petroleum products. The Company is focused on growing its business through the optimization, organic development and acquisition of terminaling, storage, rail, pipeline and other energy logistics assets. As of March 6, 2017, the Company’s energy logistics assets were located in the East Coast, Gulf Coast, Midwest, Rocky Mountains and West Coast regions of the United States and supplied a group of third-party customers, including oil companies, independent refiners, crude oil and petroleum product marketers, distributors and various industrial manufacturers. As of December 31, 2016, its assets consisted of 21 terminals in 12 states; four rail transloading facilities, and the liquefied natural gas (LNG) Interest in connection with the LNG Facility.
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