Western Gas Equity Partners (NYSE: WGP) and Clean Energy Fuels (NASDAQ:CLNE) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Western Gas Equity Partners pays an annual dividend of $2.15 per share and has a dividend yield of 5.9%. Clean Energy Fuels does not pay a dividend. Western Gas Equity Partners pays out 130.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clean Energy Fuels has raised its dividend for 3 consecutive years.
This table compares Western Gas Equity Partners and Clean Energy Fuels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Gas Equity Partners||16.96%||8.99%||4.69%|
|Clean Energy Fuels||-15.47%||-10.52%||-6.31%|
This is a summary of current ratings and recommmendations for Western Gas Equity Partners and Clean Energy Fuels, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Gas Equity Partners||0||2||6||0||2.75|
|Clean Energy Fuels||0||0||0||0||N/A|
Western Gas Equity Partners presently has a consensus target price of $50.50, indicating a potential upside of 38.36%. Given Western Gas Equity Partners’ higher probable upside, equities analysts clearly believe Western Gas Equity Partners is more favorable than Clean Energy Fuels.
Insider and Institutional Ownership
18.4% of Western Gas Equity Partners shares are owned by institutional investors. Comparatively, 35.6% of Clean Energy Fuels shares are owned by institutional investors. 26.7% of Clean Energy Fuels shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Western Gas Equity Partners has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.
Valuation & Earnings
This table compares Western Gas Equity Partners and Clean Energy Fuels’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western Gas Equity Partners||$1.80 billion||4.43||$345.77 million||$1.65||22.12|
|Clean Energy Fuels||$402.66 million||0.83||-$12.15 million||($0.37)||-6.00|
Western Gas Equity Partners has higher revenue and earnings than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than Western Gas Equity Partners, indicating that it is currently the more affordable of the two stocks.
Western Gas Equity Partners beats Clean Energy Fuels on 10 of the 15 factors compared between the two stocks.
Western Gas Equity Partners Company Profile
Western Gas Equity Partners, LP is a limited partnership. The Company is formed to own approximately three types of partnership interests in Western Gas Partners, LP (WES). WES is an master limited partnership (MLP) engaged in the business of gathering, compressing, treating, processing and transporting natural gas, and gathering, stabilizing and transporting condensate, natural gas liquids (NGLs) and crude oil. WES provides these midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. Its assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas. The Bison treating facility treats and compresses gas from coal-bed methane wells in the Powder River Basin of Wyoming. MIGC, LLC receives gas from various coal-bed methane gathering systems in the Powder River Basin and the Hilight system, as well as from WBI Energy Transmission, Inc.
Clean Energy Fuels Company Profile
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.
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