Head-To-Head Analysis: Western Gas Equity Partners, (WGP) and Sprague Resources (SRLP)

Western Gas Equity Partners, (NYSE: WGP) and Sprague Resources (NYSE:SRLP) are both oil & gas refining and marketing – nec companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Western Gas Equity Partners, and Sprague Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Gas Equity Partners, 0 2 6 0 2.75
Sprague Resources 0 0 2 0 3.00

Western Gas Equity Partners, currently has a consensus target price of $50.50, indicating a potential upside of 38.24%. Sprague Resources has a consensus target price of $33.00, indicating a potential upside of 32.00%. Given Western Gas Equity Partners,’s higher probable upside, equities analysts clearly believe Western Gas Equity Partners, is more favorable than Sprague Resources.

Risk and Volatility

Western Gas Equity Partners, has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Sprague Resources has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares Western Gas Equity Partners, and Sprague Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Western Gas Equity Partners, $1.80 billion 4.43 $345.77 million $1.65 22.14
Sprague Resources $2.39 billion 0.24 $10.16 million $1.79 13.97

Western Gas Equity Partners, has higher revenue, but lower earnings than Sprague Resources. Sprague Resources 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.

Profitability

This table compares Western Gas Equity Partners, and Sprague Resources’ 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%
Sprague Resources 1.50% 24.89% 4.21%

Dividends

Western Gas Equity Partners, pays an annual dividend of $2.15 per share and has a dividend yield of 5.9%. Sprague Resources pays an annual dividend of $2.49 per share and has a dividend yield of 10.0%. 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. Sprague Resources pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Gas Equity Partners, has raised its dividend for 3 consecutive years and Sprague Resources has raised its dividend for 2 consecutive years.

Institutional & Insider Ownership

17.8% of Western Gas Equity Partners, shares are owned by institutional investors. Comparatively, 22.9% of Sprague Resources shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Western Gas Equity Partners, beats Sprague Resources on 10 of the 16 factors compared between the two stocks.

About Western Gas Equity Partners,

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.

About Sprague Resources

Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined products and natural gas, and provides storage and handling services for a range of materials. The Company operates through four segments: refined products, which purchases a range of refined products, such as heating oil, diesel fuel, residual fuel oil, asphalt, kerosene, jet fuel and gasoline from refining companies, trading organizations and producers; natural gas, which purchases natural gas from natural gas producers and trading companies, and sells and distributes natural gas to commercial and industrial customers in the Northeast and Mid-Atlantic United States; materials handling, which offloads, stores and prepares for delivery a range of customer-owned products, including asphalt, clay slurry, coal and heavy equipment, and other operations, which include the purchase and distribution of coal, certain commercial trucking activities and the heating equipment service business.

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