Targa Resources Partners (NYSE: NGLS) and Clean Energy Fuels (NASDAQ:CLNE) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

35.6% of Clean Energy Fuels shares are held by institutional investors. 26.7% of Clean Energy Fuels shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Targa Resources Partners and Clean Energy Fuels, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Resources Partners 0 1 0 0 2.00
Clean Energy Fuels 0 0 0 0 N/A

Targa Resources Partners currently has a consensus target price of $52.00, indicating a potential upside of 388.26%. Given Targa Resources Partners’ higher possible upside, equities research analysts plainly believe Targa Resources Partners is more favorable than Clean Energy Fuels.

Earnings & Valuation

This table compares Targa Resources Partners and Clean Energy Fuels’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Targa Resources Partners N/A N/A N/A $0.78 13.65
Clean Energy Fuels $402.66 million 0.83 -$12.15 million ($0.37) -6.00

Targa Resources Partners has higher earnings, but lower revenue than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than Targa Resources Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Targa Resources Partners pays an annual dividend of $3.30 per share and has a dividend yield of 31.0%. Clean Energy Fuels does not pay a dividend. Targa Resources Partners pays out 423.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clean Energy Fuels has raised its dividend for 7 consecutive years.

Profitability

This table compares Targa Resources Partners and Clean Energy Fuels’ 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%
Clean Energy Fuels -15.47% -10.52% -6.31%

Summary

Targa Resources Partners beats Clean Energy Fuels on 6 of the 11 factors compared between the two stocks.

Targa Resources Partners Company Profile

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.

Clean Energy Fuels Company Profile

Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.

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