American Midstream Partners, (NYSE: AMID) and Suncor Energy (NYSE:SU) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for American Midstream Partners, and Suncor Energy , as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Midstream Partners, 0 2 1 0 2.33
Suncor Energy 0 3 13 1 2.88

American Midstream Partners, presently has a consensus price target of $16.33, indicating a potential upside of 27.60%. Suncor Energy has a consensus price target of $44.30, indicating a potential upside of 22.03%. Given American Midstream Partners,’s higher probable upside, equities analysts clearly believe American Midstream Partners, is more favorable than Suncor Energy .

Valuation and Earnings

This table compares American Midstream Partners, and Suncor Energy ‘s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
American Midstream Partners, $232.68 million 4.03 -$3.47 million ($0.76) -16.84
Suncor Energy $20.20 billion 2.97 $327.75 million $1.70 21.35

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

Dividends

American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 12.9%. Suncor Energy pays an annual dividend of $1.03 per share and has a dividend yield of 2.8%. American Midstream Partners, pays out -217.1% of its earnings in the form of a dividend. Suncor Energy pays out 60.6% 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. American Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

42.1% of American Midstream Partners, shares are held by institutional investors. Comparatively, 63.8% of Suncor Energy shares are held by institutional investors. 5.4% of American Midstream Partners, shares are held by insiders. Comparatively, 1.0% of Suncor Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares American Midstream Partners, and Suncor Energy ‘s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Midstream Partners, 0.12% -11.67% -2.29%
Suncor Energy 11.63% 5.68% 2.91%

Risk and Volatility

American Midstream Partners, has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Summary

Suncor Energy beats American Midstream Partners, on 10 of the 16 factors compared between the two stocks.

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.

Suncor Energy Company Profile

Suncor Energy Inc is a Canada-based integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. The Company also conducts energy trading activities.

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