Head-To-Head Survey: Natural Resource Partners (NYSE:NRP) and NGL Energy Partners (NYSE:NGL)

Natural Resource Partners (NYSE:NRP) and NGL Energy Partners (NYSE:NGL) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares Natural Resource Partners and NGL Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Resource Partners	57.13%	16.65%	13.88%
NGL Energy Partners	-3.76%	-39.51%	3.90%

Earnings and Valuation

This table compares Natural Resource Partners and NGL Energy Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Resource Partners	$207.28 million	7.11	$136.37 million	$7.84	14.18
NGL Energy Partners	$3.16 billion	0.60	-$142.29 million	($2.84)	-5.38

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

Institutional and Insider Ownership

31.8% of Natural Resource Partners shares are owned by institutional investors. Comparatively, 40.6% of NGL Energy Partners shares are owned by institutional investors. 35.3% of Natural Resource Partners shares are owned by company insiders. Comparatively, 7.3% of NGL Energy Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Natural Resource Partners has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, NGL Energy Partners has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Natural Resource Partners and NGL Energy Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Resource Partners	0	1	0	0	2.00
NGL Energy Partners	1	1	0	0	1.50

Summary

Natural Resource Partners beats NGL Energy Partners on 9 of the 12 factors compared between the two stocks.

About Natural Resource Partners

Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.

About NGL Energy Partners

NGL Energy Partners LP engages in the transportation, storage, blending, and marketing of crude oil, natural gas liquids, refined products / renewables, and water solutions. The company operates in three segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics. The Water Solutions segment transports, treats, recycles, and disposes produced and flowback water generated from oil and natural gas production; aggregates and sells recovered crude oil; disposes solids, such as tank bottoms, and drilling fluid and muds, as well as performs truck and frac tank washouts; and sells produced water for reuse and recycle, and brackish non-potable water. The Crude Oil Logistics segment purchases crude oil from producers and marketers, and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs; and provides storage, terminaling, and transportation services through pipelines. The Liquids Logistics segment supplies natural gas liquids, refined petroleum products, and biodiesel to commercial, retail, and industrial customers in the United States and Canada through its 24 terminals, third-party storage and terminal facilities, and nine common carrier pipelines, as well as through fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma.