Contrasting Mplx Lp (MPLX) and The Competition

Mplx Lp (NYSE: MPLX) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its competitors? We will compare Mplx Lp to related companies based on the strength of its risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Institutional & Insider Ownership

63.2% of Mplx Lp shares are held by institutional investors. Comparatively, 57.2% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.3% of shares of all “Oil & Gas Transportation Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Mplx Lp pays an annual dividend of $2.25 per share and has a dividend yield of 6.3%. Mplx Lp pays out 271.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.4% and pay out 172.0% of their earnings in the form of a dividend. Mplx Lp has increased its dividend for 3 consecutive years. Mplx Lp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mplx Lp and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mplx Lp 0 1 11 1 3.00
Mplx Lp Competitors 269 1722 2319 82 2.50

Mplx Lp presently has a consensus target price of $42.25, indicating a potential upside of 19.15%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 16.88%. Given Mplx Lp’s stronger consensus rating and higher probable upside, analysts clearly believe Mplx Lp is more favorable than its competitors.

Risk & Volatility

Mplx Lp has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Mplx Lp’s competitors have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mplx Lp and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Mplx Lp $3.04 billion $1.47 billion 42.72
Mplx Lp Competitors $5.66 billion $1.31 billion 38.23

Mplx Lp’s competitors have higher revenue, but lower earnings than Mplx Lp. Mplx Lp is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Mplx Lp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mplx Lp 19.07% 6.13% 3.51%
Mplx Lp Competitors 17.34% 14.24% 5.50%

Summary

Mplx Lp beats its competitors on 8 of the 15 factors compared.

About Mplx Lp

MPLX LP is a master limited partnership (MLP) formed by Marathon Petroleum Corporation (MPC) to own, operate, develop and acquire midstream energy infrastructure assets. The Company is 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, transportation and storage of crude oil and refined petroleum products. Its segments are Logistics and Storage (L&S), and Gathering and Processing (G&P). The L&S segment includes transportation and storage of crude oil, refined products and other hydrocarbon-based products. As of December 31, 2016, the G&P segment operated various natural gas gathering systems that had a combined 5,439 million cubic feet per day (mmcf/d) throughput capacity. As of December 31, 2016, its assets included infrastructure to support MPC, including approximately 2,900 miles of crude oil and refined product pipelines across nine states.

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