Critical Comparison: Sasol (SSL) versus Targa Resources Partners (NGLS)
Sasol (NYSE: SSL) and Targa Resources Partners (NYSE:NGLS) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
Sasol pays an annual dividend of $1.29 per share and has a dividend yield of 4.6%. Targa Resources Partners does not pay a dividend. Targa Resources Partners has increased its dividend for 7 consecutive years.
This table compares Sasol and Targa Resources Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Targa Resources Partners||3.27%||0.29%||1.61%|
This is a breakdown of recent ratings for Sasol and Targa Resources Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Targa Resources Partners||0||1||2||0||2.67|
Targa Resources Partners has a consensus target price of $53.00, indicating a potential upside of 397.65%. Given Targa Resources Partners’ higher probable upside, analysts plainly believe Targa Resources Partners is more favorable than Sasol.
Institutional and Insider Ownership
1.8% of Sasol shares are owned by institutional investors. 1.0% of Sasol shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Sasol and Targa Resources Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sasol||$13.17 billion||1.37||$3.88 billion||N/A||N/A|
|Targa Resources Partners||N/A||N/A||N/A||N/A||N/A|
Sasol has higher revenue and earnings than Targa Resources Partners.
Sasol beats Targa Resources Partners on 6 of the 11 factors compared between the two stocks.
Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.
About Targa Resources Partners
Targa Resources Partners LP is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States with a presence in crude oil gathering and petroleum terminaling. The Company is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to liquefied petroleum gas (LPG) exporters; gathering, storing and terminaling crude oil, and storing, terminaling and selling refined petroleum products. The Company operates in two divisions: Gathering and Processing, and Logistics and Marketing. The Gathering and Processing division consists of two segments: Field Gathering and Processing, and Coastal Gathering and Processing. The Logistics and Marketing division consists of two segments: Logistics Assets and Marketing and Distribution.
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