Enbridge Energy Partners (NYSE:EEP) and Valero Energy Partners (NYSE:VLP) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Enbridge Energy Partners pays an annual dividend of $1.40 per share and has a dividend yield of 12.3%. Valero Energy Partners pays an annual dividend of $2.20 per share and has a dividend yield of 5.5%. Enbridge Energy Partners pays out 175.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Valero Energy Partners pays out 79.4% 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 has increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
42.6% of Enbridge Energy Partners shares are held by institutional investors. Comparatively, 28.0% of Valero Energy Partners shares are held by institutional investors. 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 Enbridge Energy Partners and Valero Energy Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enbridge Energy Partners||$2.43 billion||1.53||$282.00 million||$0.80||14.25|
|Valero Energy Partners||$452.01 million||6.26||$238.43 million||$2.77||14.45|
Enbridge Energy Partners has higher revenue and earnings than Valero Energy Partners. Enbridge Energy Partners is trading at a lower price-to-earnings ratio than Valero Energy Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Enbridge Energy Partners and Valero Energy Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enbridge Energy Partners||2||7||0||0||1.78|
|Valero Energy Partners||0||8||4||0||2.33|
Enbridge Energy Partners presently has a consensus price target of $12.44, suggesting a potential upside of 9.16%. Valero Energy Partners has a consensus price target of $46.05, suggesting a potential upside of 15.06%. Given Valero Energy Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Valero Energy Partners is more favorable than Enbridge Energy Partners.
This table compares Enbridge Energy Partners and Valero Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enbridge Energy Partners||9.25%||7.59%||3.45%|
|Valero Energy Partners||46.87%||108.14%||16.40%|
Risk and Volatility
Enbridge Energy Partners has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Valero Energy Partners has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
Valero Energy Partners beats Enbridge Energy Partners on 11 of the 16 factors compared between the two stocks.
Enbridge Energy Partners Company Profile
Enbridge Energy Partners, L.P. provides crude oil and liquid petroleum gathering, transportation, and storage services assets in the United States. The company's Lakehead system consists of approximately 4,212 miles of pipe and 74 pump stations located in the Great Lakes and Midwest regions of the United States. Its North Dakota crude oil system comprises approximately 660 miles, has 12 pump stations, delivery points, and storage facilities; and Mid-Continent system includes approximately 20 million barrels of storage capacity. The company serves integrated oil companies, independent oil producers, refiners, and marketers. Enbridge Energy Company, Inc. operates as a general partner of Enbridge Energy Partners, L.P. The company was formerly known as Lakehead Pipe Line Partners, L.P. and changed its name to Enbridge Energy Partners, L.P. in 2001. Enbridge Energy Partners, L.P. was founded in 1991 and is headquartered in Houston, Texas.
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 in the United States. Its assets consists of the Port Arthur logistics system, the McKee logistics system, the Memphis logistics system, the Three Rivers logistics system, the Ardmore logistics system, the Houston logistics system, the St. Charles logistics system, the Corpus Christi logistics system, and the Meraux logistics system located in the Gulf Coast and Mid-Continent regions of the United States. Valero Energy Partners GP LLC serves as a general partner of the company. The company was founded in 2013 and is headquartered in San Antonio, Texas. Valero Energy Partners LP is a subsidiary of Valero Energy Corporation.
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