Global Partners (NYSE: GLP) and Sunoco (NYSE:SUN) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitabiliy, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Earnings and Valuation

This table compares Global Partners and Sunoco’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Global Partners $8.76 billion 0.07 $224.50 million ($5.02) -3.67
Sunoco $16.88 billion 0.18 $722.00 million ($5.77) -5.41

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

Insider & Institutional Ownership

47.3% of Global Partners shares are held by institutional investors. Comparatively, 27.5% of Sunoco shares are held by institutional investors. 41.5% of Global Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Global Partners and Sunoco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Partners 1 2 1 0 2.00
Sunoco 2 7 5 0 2.21

Global Partners presently has a consensus price target of $18.25, indicating a potential downside of 0.82%. Sunoco has a consensus price target of $31.00, indicating a potential downside of 0.77%. Given Sunoco’s stronger consensus rating and higher possible upside, analysts clearly believe Sunoco is more favorable than Global Partners.

Profitability

This table compares Global Partners and Sunoco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Partners -1.93% -1.83% -0.35%
Sunoco -2.77% 7.81% 2.24%

Risk & Volatility

Global Partners has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Sunoco has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Dividends

Global Partners pays an annual dividend of $1.85 per share and has a dividend yield of 10.1%. Sunoco pays an annual dividend of $3.30 per share and has a dividend yield of 10.6%. Global Partners pays out -36.9% of its earnings in the form of a dividend. Sunoco pays out -57.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sunoco is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Sunoco beats Global Partners on 10 of the 15 factors compared between the two stocks.

About Global Partners

Global Partners LP is a midstream logistics and marketing company. It is engaged in the purchasing, selling, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, natural gas and propane. Its segments include Wholesale, Gasoline Distribution and Station Operations and Commercial. In Wholesale segment, the Company engages in the logistics of selling, gathering, storage and transportation of refined petroleum products, renewable fuels, crude oil and propane. In Gasoline Distribution and Station Operations segment, gasoline distribution includes sales of branded and unbranded gasoline to gasoline station operators and sub-jobbers. The Commercial segment includes sales and deliveries to end user customers in the public sector and to commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil, bunker fuel and natural gas.

About Sunoco

Sunoco LP is engaged in the retail sale of motor fuels and merchandise through its Company-operated convenience stores and retail fuel sites, as well as the wholesale distribution of motor fuels to convenience stores, independent dealers, commercial customers and distributors. The Company operates through two segments: wholesale and retail. The Wholesale segment sells motor fuel to its retail segment and external customers. The Retail segment operates convenience stores selling a range of merchandise, food items, services and motor fuel. As of December 31, 2016, the Company operated approximately 1,345 convenience stores and fuel outlets in over 20 states, offering merchandise, food service, motor fuel and other services.

Receive News & Ratings for Global Partners LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Global Partners LP and related companies with MarketBeat.com's FREE daily email newsletter.