VTTI Energy Partners (NYSE: VTTI) and Tallgrass Energy GP, (NYSE:TEGP) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
This table compares VTTI Energy Partners and Tallgrass Energy GP,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VTTI Energy Partners||11.04%||14.27%||5.82%|
|Tallgrass Energy GP,||5.91%||2.01%||0.96%|
This is a summary of recent ratings for VTTI Energy Partners and Tallgrass Energy GP,, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VTTI Energy Partners||0||3||0||0||2.00|
|Tallgrass Energy GP,||1||5||3||0||2.22|
VTTI Energy Partners presently has a consensus target price of $19.50, indicating a potential upside of 0.00%. Tallgrass Energy GP, has a consensus target price of $30.00, indicating a potential upside of 12.99%. Given Tallgrass Energy GP,’s stronger consensus rating and higher possible upside, analysts plainly believe Tallgrass Energy GP, is more favorable than VTTI Energy Partners.
Earnings and Valuation
This table compares VTTI Energy Partners and Tallgrass Energy GP,’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|VTTI Energy Partners||$317.00 million||2.87||$205.45 million||N/A||N/A|
|Tallgrass Energy GP,||$614.20 million||2.51||$349.34 million||$0.68||39.04|
Tallgrass Energy GP, has higher revenue and earnings than VTTI Energy Partners.
Institutional and Insider Ownership
74.5% of VTTI Energy Partners shares are owned by institutional investors. Comparatively, 99.7% of Tallgrass Energy GP, shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Tallgrass Energy GP, pays an annual dividend of $1.37 per share and has a dividend yield of 5.2%. Tallgrass Energy GP, pays out 201.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VTTI Energy Partners has increased its dividend for 2 consecutive years. VTTI Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
VTTI Energy Partners has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Tallgrass Energy GP, has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.
Tallgrass Energy GP, beats VTTI Energy Partners on 8 of the 15 factors compared between the two stocks.
About VTTI Energy Partners
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.
About Tallgrass Energy GP,
Tallgrass Energy GP, LP is a limited partnership company, which includes the operations of Tallgrass Equity, LLC (Tallgrass Equity), Tallgrass MLP GP, LLC, Tallgrass Energy Partners, LP (TEP), and TEP’s subsidiaries. TEP owns, operates, acquires and develops midstream energy assets in North America. TEP’s segments include Crude Oil Transportation & Logistics, which is engaged in the ownership and operation of a crude oil pipeline system, and crude oil storage and terminaling facilities; Natural Gas Transportation & Logistics, which is engaged in the ownership and operation of interstate natural gas pipelines and integrated natural gas storage facilities; Processing & Logistics, which is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities, and the provision of water business services to the oil and gas exploration and production industry, and Corporate and Other.
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