NuStar GP (NYSE:NSH) and Energy Transfer Partners (NYSE:ETP) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
NuStar GP pays an annual dividend of $1.32 per share and has a dividend yield of 5.3%. Energy Transfer Partners pays an annual dividend of $2.26 per share and has a dividend yield of 10.1%. NuStar GP pays out 65.7% of its earnings in the form of a dividend. Energy Transfer Partners pays out 313.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and target prices for NuStar GP and Energy Transfer Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy Transfer Partners||0||3||10||0||2.77|
NuStar GP currently has a consensus target price of $14.80, suggesting a potential downside of 40.68%. Energy Transfer Partners has a consensus target price of $24.45, suggesting a potential upside of 9.37%. Given Energy Transfer Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Energy Transfer Partners is more favorable than NuStar GP.
Insider and Institutional Ownership
48.1% of NuStar GP shares are held by institutional investors. Comparatively, 61.4% of Energy Transfer Partners shares are held by institutional investors. 21.4% of NuStar GP shares are held by insiders. Comparatively, 3.7% of Energy Transfer Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares NuStar GP and Energy Transfer Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy Transfer Partners||8.24%||8.00%||3.30%|
Volatility and Risk
NuStar GP has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Energy Transfer Partners has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.
Valuation & Earnings
This table compares NuStar GP and Energy Transfer Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NuStar GP||$51.56 million||20.78||$86.77 million||$2.01||12.41|
|Energy Transfer Partners||$29.05 billion||0.90||$2.08 billion||$0.72||31.06|
Energy Transfer Partners has higher revenue and earnings than NuStar GP. NuStar GP is trading at a lower price-to-earnings ratio than Energy Transfer Partners, indicating that it is currently the more affordable of the two stocks.
NuStar GP Company Profile
NuStar GP Holdings, LLC, through its ownership interests in NuStar Energy L.P., engages in the transportation of petroleum products and anhydrous ammonia. The company is also involved in the terminalling, storage, and marketing of petroleum products. It has pipelines in the United States; and terminal and storage facilities in the United States, Canada, Mexico, and the United Kingdom, as well as the Netherlands, including St. Eustatius in the Caribbean. The company was founded in 2000 and is headquartered in San Antonio, Texas.
Energy Transfer Partners Company Profile
Energy Transfer Partners, L.P. engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States. The company's Intrastate Transportation and Storage segment transports natural gas from various natural gas producing areas through connections with other pipeline systems, as well as through its ET Fuel System and HPL System. This segment owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas. Its Interstate Transportation and Storage segment provides natural gas transportation and storage services; owns and operates approximately 11,800 miles of interstate natural gas pipelines; and has interests in various natural gas pipelines. The company's Midstream segment gathers, compresses, treats, blends, processes, and markets natural gas. It owns and operates natural gas and natural gas liquids (NGL) gathering pipelines, natural gas processing plants, natural gas treating facilities, and natural gas conditioning facilities. The company's NGL and Refined Products Transportation and Services segment transports mixed NGLs and other hydrocarbons; stores mixed NGLs, NGL products, and petrochemical products; and separates mixed NGL streams into purity products. This segment owns and operates various NGL pipelines, NGL and propane fractionation facilities, and NGL storage facilities. Its Crude Oil Transportation and Services segment engages in the transportation, terminalling, and acquisition and marketing of crude oil; and operates crude oil trunk and gathering pipelines. The company's All Other segment engages in the natural gas compression equipment business; provides natural gas compression equipment and compression services; manages coal and natural resources property, sells standing timber, and leases coal-related infrastructure facilities; and generates electrical power. Energy Transfer Partners, L.P. was founded in 1995 and is based in Dallas, Texas.
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