Financial Review: BP p.l.c. (BP) & American Midstream Partners, (AMID)
BP p.l.c. (NYSE: BP) and American Midstream Partners, (NYSE:AMID) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Institutional and Insider Ownership
10.1% of BP p.l.c. shares are owned by institutional investors. Comparatively, 42.2% of American Midstream Partners, shares are owned by institutional investors. 1.0% of BP p.l.c. shares are owned by company insiders. Comparatively, 5.4% of American Midstream Partners, shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares BP p.l.c. and American Midstream Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Midstream Partners,||-10.35%||-19.39%||-3.16%|
Valuation and Earnings
This table compares BP p.l.c. and American Midstream Partners,’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BP p.l.c.||$209.85 billion||0.61||$19.97 billion||$1.15||34.00|
|American Midstream Partners,||$296.02 million||2.53||$12.92 million||($1.89)||-7.51|
BP p.l.c. has higher revenue and earnings than American Midstream Partners,. American Midstream Partners, is trading at a lower price-to-earnings ratio than BP p.l.c., indicating that it is currently the more affordable of the two stocks.
BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.1%. American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 11.6%. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Midstream Partners, pays out -87.3% of its earnings in the form of a dividend. American Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
BP p.l.c. has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, American Midstream Partners, has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for BP p.l.c. and American Midstream Partners,, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Midstream Partners,||0||2||1||0||2.33|
BP p.l.c. currently has a consensus target price of $36.58, indicating a potential downside of 6.46%. American Midstream Partners, has a consensus target price of $16.33, indicating a potential upside of 15.02%. Given American Midstream Partners,’s higher possible upside, analysts clearly believe American Midstream Partners, is more favorable than BP p.l.c..
BP p.l.c. beats American Midstream Partners, on 8 of the 15 factors compared between the two stocks.
BP p.l.c. Company Profile
BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.
American Midstream Partners, Company Profile
American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.
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