Genesis Energy (NYSE:GEL) vs. CrossAmerica Partners (NYSE:CAPL) Financial Review

Genesis Energy (NYSE:GEL) and CrossAmerica Partners (NYSE:CAPL) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Dividends

Genesis Energy pays an annual dividend of $0.66 per share and has a dividend yield of 4.0%. CrossAmerica Partners pays an annual dividend of $2.10 per share and has a dividend yield of 9.9%. Genesis Energy pays out -12.7% of its earnings in the form of a dividend. CrossAmerica Partners pays out 262.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genesis Energy has raised its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Genesis Energy and CrossAmerica Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genesis Energy	$2.97 billion	0.69	-$63.95 million	($5.21)	-3.19
CrossAmerica Partners	$4.10 billion	0.20	$19.89 million	$0.80	26.51

CrossAmerica Partners has higher revenue and earnings than Genesis Energy. Genesis Energy is trading at a lower price-to-earnings ratio than CrossAmerica Partners, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Genesis Energy has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, CrossAmerica Partners has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Genesis Energy and CrossAmerica Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genesis Energy	0	0	3	0	3.00
CrossAmerica Partners	0	0	0	0	0.00

Genesis Energy currently has a consensus price target of $16.50, indicating a potential downside of 0.75%. Given Genesis Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Genesis Energy is more favorable than CrossAmerica Partners.

Profitability

This table compares Genesis Energy and CrossAmerica Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genesis Energy	-20.98%	-19.28%	-1.84%
CrossAmerica Partners	0.80%	-45.12%	2.37%

Institutional and Insider Ownership

66.8% of Genesis Energy shares are held by institutional investors. Comparatively, 24.1% of CrossAmerica Partners shares are held by institutional investors. 0.7% of Genesis Energy shares are held by company insiders. Comparatively, 52.0% of CrossAmerica Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Genesis Energy beats CrossAmerica Partners on 9 of the 17 factors compared between the two stocks.

About Genesis Energy

Genesis Energy, L.P. provides integrated suite of midstream services in crude oil and natural gas industry in the United States. It operates through Offshore Pipeline Transportation, Soda and Sulfur Services, Marine Transportation, and Onshore Facilities and Transportation segments. The Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as deep water pipeline servicing. This segment also owns interests in offshore crude oil and natural gas pipeline systems, platforms, and related infrastructure. The Soda and Sulfur Services segment produces, markets, and sells soda ash; and provides sulfur removal services. This segment also owns and operates soda ash production facilities, underground trona ore mines and brine solution mining operations and related equipment, and logistics and other assets; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. The Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges and 42 push/tow boats. The Onshore Facilities and Transportation segment offers onshore facilities and transportation services to crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products; and operates trucks, trailers, railcars, and terminals and tankage in various locations along the Gulf Coast. This segment also transports crude oil, as well as owns four onshore crude oil pipeline systems and four operational crude oil rail unloading facilities. The company was incorporated in 1996 and is headquartered in Houston, Texas.

About CrossAmerica Partners

CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, operation of convenience stores, and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States. It operates in two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents, and company operated retail sites. The Retail segment is involved in the sale of convenience merchandise items; and retail sale of motor fuels at company operated retail sites and retail sites operated by commission agents. CrossAmerica GP LLC operates as the general partner of the company. The company was formerly known as Lehigh Gas Partners LP and changed its name to CrossAmerica Partners LP in October 2014. The company was founded in 1992 and is based in Allentown, Pennsylvania.