Suburban Propane Partners (NYSE: SPH) and Hess (NYSE:HES) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Risk and Volatility
Suburban Propane Partners has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Hess has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.
Institutional and Insider Ownership
25.8% of Suburban Propane Partners shares are owned by institutional investors. Comparatively, 89.1% of Hess shares are owned by institutional investors. 0.6% of Suburban Propane Partners shares are owned by company insiders. Comparatively, 11.8% of Hess shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Suburban Propane Partners and Hess’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Suburban Propane Partners||$1.19 billion||1.33||$37.99 million||$0.62||41.52|
|Hess||$4.84 billion||3.58||-$6.13 billion||($20.19)||-2.70|
Suburban Propane Partners has higher earnings, but lower revenue than Hess. Hess is trading at a lower price-to-earnings ratio than Suburban Propane Partners, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Suburban Propane Partners and Hess, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Suburban Propane Partners||0||1||1||0||2.50|
Suburban Propane Partners presently has a consensus target price of $26.00, suggesting a potential upside of 1.01%. Hess has a consensus target price of $50.99, suggesting a potential downside of 6.51%. Given Suburban Propane Partners’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Suburban Propane Partners is more favorable than Hess.
This table compares Suburban Propane Partners and Hess’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Suburban Propane Partners||3.20%||5.81%||1.70%|
Suburban Propane Partners pays an annual dividend of $2.40 per share and has a dividend yield of 9.3%. Hess pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Suburban Propane Partners pays out 387.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hess pays out -5.0% of its earnings in the form of a dividend. Hess has increased its dividend for 3 consecutive years.
Suburban Propane Partners beats Hess on 9 of the 17 factors compared between the two stocks.
About Suburban Propane Partners
Suburban Propane Partners, L.P. is a marketer and distributor of a range of products. The Company specializes in the distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. In support of its marketing and distribution operations, the Company installs and services a range of home comfort equipment, particularly in the areas of heating and ventilation. The Company conducts its business through Suburban Propane, L.P., which operates its propane business and assets (the Operating Partnership), and its direct and indirect subsidiaries. As of September 24, 2016, it had sold approximately 414.8 million gallons of propane and 30.9 million gallons of fuel oil and refined fuels to retail customers. The Company owns and operates a propane storage facility in Elk Grove, California.
Hess Corporation is an exploration and production company. The Company is engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids (NGL) and natural gas. The Company’s segments include Exploration and Production, and Bakken Midstream. Its Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, NGLs and natural gas with production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area (JDA), Malaysia and Norway. The Bakken Midstream segment provides fee-based services, including crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and NGLs, and the storage and terminaling of propane, primarily in the Bakken shale play of North Dakota.
Receive News & Ratings for Suburban Propane Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Suburban Propane Partners and related companies with MarketBeat.com's FREE daily email newsletter.