VTTI Energy Partners (NYSE: VTTI) and Valero Energy Partners (NYSE:VLP) are both oil & gas transportation services – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Valuation & Earnings
This table compares VTTI Energy Partners and Valero Energy Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|VTTI Energy Partners||N/A||N/A||N/A||$0.81||24.07|
|Valero Energy Partners||$362.62 million||7.71||$188.83 million||$2.83||14.20|
Valero Energy Partners has higher revenue and earnings than VTTI Energy Partners. Valero Energy Partners is trading at a lower price-to-earnings ratio than VTTI Energy Partners, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
VTTI Energy Partners has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Valero Energy Partners has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
This table compares VTTI Energy Partners and Valero Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VTTI Energy Partners||35.11%||8.09%||7.61%|
|Valero Energy Partners||54.43%||184.08%||22.28%|
This is a breakdown of current recommendations and price targets for VTTI Energy Partners and Valero Energy Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VTTI Energy Partners||0||3||0||0||2.00|
|Valero Energy Partners||0||2||6||0||2.75|
VTTI Energy Partners presently has a consensus target price of $19.50, indicating a potential upside of 0.00%. Valero Energy Partners has a consensus target price of $53.14, indicating a potential upside of 32.23%. Given Valero Energy Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Valero Energy Partners is more favorable than VTTI Energy Partners.
VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Valero Energy Partners pays an annual dividend of $1.92 per share and has a dividend yield of 4.8%. VTTI Energy Partners pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Valero Energy Partners pays out 67.8% of its earnings in the form of a dividend. VTTI Energy Partners has raised its dividend for 2 consecutive years and Valero Energy Partners has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
74.5% of VTTI Energy Partners shares are held by institutional investors. Comparatively, 30.2% of Valero Energy Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valero Energy Partners beats VTTI Energy Partners on 9 of the 12 factors compared between the two stocks.
VTTI Energy Partners Company Profile
VTTI Energy Partners LP provides terminaling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. The Company operates through the segment of energy storage terminaling business. Its assets consist of approximately 42.6% interest in VTTI MLP B.V., which owns a portfolio of over six terminals with over 400 tanks and approximately 35.7 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America. Its terminals are located in international supply and demand centers for refined petroleum products and crude oil and provide midstream infrastructure services to its customers at these international market hubs. It provides storage and terminaling services for energy industry participants, including marketing companies, integrated oil companies, national oil companies, distributors, and chemical and petrochemical companies.
Valero Energy Partners Company Profile
Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.
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