Head to Head Review: Sasol (SSL) & Crestwood Equity Partners (CEQP)
Sasol (NYSE: SSL) and Crestwood Equity Partners (NYSE:CEQP) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
Insider and Institutional Ownership
2.1% of Sasol shares are held by institutional investors. Comparatively, 64.4% of Crestwood Equity Partners shares are held by institutional investors. 1.0% of Sasol shares are held by insiders. Comparatively, 36.2% of Crestwood Equity Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.2%. Crestwood Equity Partners pays an annual dividend of $2.40 per share and has a dividend yield of 8.8%. Sasol pays out 28.9% of its earnings in the form of a dividend. Crestwood Equity Partners pays out -66.9% 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. Crestwood Equity Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Sasol has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Crestwood Equity Partners has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500.
This table compares Sasol and Crestwood Equity Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crestwood Equity Partners||-6.17%||-4.04%||-1.62%|
Earnings and Valuation
This table compares Sasol and Crestwood Equity Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sasol||$12.68 billion||1.74||$1.50 billion||$2.56||13.21|
|Crestwood Equity Partners||$3.88 billion||0.50||-$191.90 million||($3.59)||-7.56|
Sasol has higher revenue and earnings than Crestwood Equity Partners. Crestwood Equity Partners is trading at a lower price-to-earnings ratio than Sasol, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Sasol and Crestwood Equity Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crestwood Equity Partners||0||1||3||0||2.75|
Crestwood Equity Partners has a consensus price target of $31.33, suggesting a potential upside of 15.41%. Given Crestwood Equity Partners’ higher probable upside, analysts plainly believe Crestwood Equity Partners is more favorable than Sasol.
Sasol beats Crestwood Equity Partners on 9 of the 15 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 Crestwood Equity Partners
Crestwood Equity Partners LP is a holding company and a master limited partnership (MLP). The Company develops, acquires, owns or controls, and operates assets and operations within the energy midstream sector. The Company’s segments include gathering and processing (G&P), which includes its natural gas, crude oil and produced water G&P operations; storage and transportation, which includes its natural gas and crude oil storage and transportation operations, and marketing, supply and logistics, which includes its natural gas liquid (NGL) supply and logistics business, crude oil storage and rail loading facilities and fleet, and salt production business. The Company provides infrastructure solutions to service natural gas and crude oil shale plays across the United States. It owns and operates a portfolio of crude oil and natural gas gathering, processing, storage and transportation assets. Its operating assets are owned by or through its subsidiary, Crestwood Midstream Partners LP.
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