Head to Head Review: Green Plains Partners (GPP) and Green Plains (GPRE)

Green Plains Partners (NASDAQ: GPP) and Green Plains (NASDAQ:GPRE) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Profitability

This table compares Green Plains Partners and Green Plains’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Plains Partners 54.20% -89.44% 61.48%
Green Plains 1.08% -5.27% -2.07%



Institutional & Insider Ownership

19.1% of Green Plains Partners shares are owned by institutional investors. 5.9% of Green Plains shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Green Plains Partners and Green Plains’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Plains Partners $106.99 million 5.14 $58.86 million $1.81 9.56
Green Plains $3.60 billion 0.24 $61.06 million ($0.86) -24.07

Green Plains has higher revenue and earnings than Green Plains Partners. Green Plains is trading at a lower price-to-earnings ratio than Green Plains Partners, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Green Plains Partners has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Green Plains has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Green Plains Partners and Green Plains, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Plains Partners 1 1 3 0 2.40
Green Plains 0 0 5 0 3.00

Green Plains Partners currently has a consensus target price of $19.40, suggesting a potential upside of 12.14%. Green Plains has a consensus target price of $26.20, suggesting a potential upside of 26.57%. Given Green Plains’ stronger consensus rating and higher probable upside, analysts plainly believe Green Plains is more favorable than Green Plains Partners.

Dividends

Green Plains Partners pays an annual dividend of $1.90 per share and has a dividend yield of 11.0%. Green Plains pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Green Plains Partners pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Green Plains pays out -55.8% of its earnings in the form of a dividend.

Summary

Green Plains beats Green Plains Partners on 9 of the 16 factors compared between the two stocks.

About Green Plains Partners

Green Plains Partners LP provides fuel storage and transportation services. It acquires, owns, develops, and operates ethanol and fuel storage tanks, terminals, transportation assets, and other related assets and businesses. The company owns or leases 39 ethanol storage facilities and approximately 61 acres of land. Green Plains Holdings LLC serves as the general partner of the company. The company was founded in 2015 and is headquartered in Omaha, Nebraska. Green Plains Partners LP is a subsidiary of Green Plains Inc.

About Green Plains

Green Plains Inc. produces, markets, and distributes ethanol in the United States and internationally. The company operates through four segments: Ethanol Production; Agribusiness and Energy Services; Food and Ingredients; and Partnership. The Ethanol Production segment produces and sells ethanol, distiller grains, and corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling, and storage activities; and commodity marketing business, which purchases, markets, sells, and distributes ethanol, distiller grains, and corn oil, as well as crude oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Food and Ingredients segment purchases and sells feeder cattle to meat processors; and produces and sells white distilled vinegar and various specialty vinegar, such as balsamic, red wine, white wine, cider, and other varietals primarily to the food industry participants, including branded food companies, private label food manufacturers, and companies serving the foodservice channel, as well as for retail and industrial uses. This segment also produces, trades in, and sells corn and soybean oil. The Partnership segment offers fuel storage and transportation services. As of December 31, 2017, this segment owned 39 ethanol storage facilities; 8 fuel terminal facilities; and approximately a fleet of 3,500 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was founded in 2004 and is headquartered in Omaha, Nebraska.

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