Analyzing Sprague Resources (SRLP) & Clean Energy Fuels Corp. (CLNE)

Sprague Resources (NYSE: SRLP) and Clean Energy Fuels Corp. (NASDAQ:CLNE) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Dividends

Sprague Resources pays an annual dividend of $2.43 per share and has a dividend yield of 9.7%. Clean Energy Fuels Corp. does not pay a dividend. Sprague Resources pays out 119.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sprague Resources has increased its dividend for 2 consecutive years.

Volatility & Risk

Sprague Resources has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Clean Energy Fuels Corp. has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Profitability

This table compares Sprague Resources and Clean Energy Fuels Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprague Resources 1.77% 29.64% 4.95%
Clean Energy Fuels Corp. 7.24% 5.14% 2.98%

Earnings & Valuation

This table compares Sprague Resources and Clean Energy Fuels Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sprague Resources $2.62 billion 0.22 $105.38 million $2.03 12.32
Clean Energy Fuels Corp. $369.36 million 0.99 $18.21 million $0.15 16.20

Sprague Resources has higher revenue and earnings than Clean Energy Fuels Corp.. Sprague Resources is trading at a lower price-to-earnings ratio than Clean Energy Fuels Corp., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sprague Resources and Clean Energy Fuels Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprague Resources 0 0 2 0 3.00
Clean Energy Fuels Corp. 0 0 0 0 N/A

Sprague Resources presently has a consensus target price of $33.00, indicating a potential upside of 32.00%. Given Sprague Resources’ higher possible upside, equities analysts clearly believe Sprague Resources is more favorable than Clean Energy Fuels Corp..

Institutional and Insider Ownership

24.6% of Sprague Resources shares are held by institutional investors. Comparatively, 34.4% of Clean Energy Fuels Corp. shares are held by institutional investors. 26.7% of Clean Energy Fuels Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Sprague Resources beats Clean Energy Fuels Corp. on 9 of the 16 factors compared between the two stocks.

About Sprague Resources

Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined products and natural gas, and provides storage and handling services for a range of materials. The Company operates through four segments: refined products, which purchases a range of refined products, such as heating oil, diesel fuel, residual fuel oil, asphalt, kerosene, jet fuel and gasoline from refining companies, trading organizations and producers; natural gas, which purchases natural gas from natural gas producers and trading companies, and sells and distributes natural gas to commercial and industrial customers in the Northeast and Mid-Atlantic United States; materials handling, which offloads, stores and prepares for delivery a range of customer-owned products, including asphalt, clay slurry, coal and heavy equipment, and other operations, which include the purchase and distribution of coal, certain commercial trucking activities and the heating equipment service business.

About Clean Energy Fuels Corp.

Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.

Receive News & Ratings for Sprague Resources LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sprague Resources LP and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply