Arc Logistics Partners (NYSE: ARCX) and Sasol (NYSE:SSL) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Earnings & Valuation
This table compares Arc Logistics Partners and Sasol’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arc Logistics Partners||$105.38 million||0.00||$15.04 million||$0.41||N/A|
|Sasol||$12.68 billion||1.86||$1.50 billion||$2.69||13.46|
Sasol has higher revenue and earnings than Arc Logistics Partners. Arc Logistics 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 breakdown of recent ratings and recommmendations for Arc Logistics Partners and Sasol, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arc Logistics Partners||0||2||0||0||2.00|
Arc Logistics Partners presently has a consensus price target of $16.50, suggesting a potential upside of Infinity. Given Arc Logistics Partners’ higher possible upside, research analysts plainly believe Arc Logistics Partners is more favorable than Sasol.
This table compares Arc Logistics Partners and Sasol’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arc Logistics Partners||4.36%||-0.11%||0.75%|
Insider & Institutional Ownership
44.4% of Arc Logistics Partners shares are held by institutional investors. Comparatively, 2.0% of Sasol shares are held by institutional investors. 1.0% of Sasol shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Arc Logistics Partners has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Sasol has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Arc Logistics Partners pays an annual dividend of $1.76 per share. Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.0%. Arc Logistics Partners pays out 429.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sasol pays out 27.5% of its earnings in the form of a dividend. Sasol has increased its dividend for 3 consecutive years. Sasol is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Sasol beats Arc Logistics Partners on 11 of the 16 factors compared between the two stocks.
About Arc Logistics Partners
Arc Logistics Partners LP owns, operates, develops and acquires a portfolio of energy logistics assets. The Company is engaged in the terminaling, storage, throughput and transloading of crude oil and petroleum products. The Company is focused on growing its business through the optimization, organic development and acquisition of terminaling, storage, rail, pipeline and other energy logistics assets. As of March 6, 2017, the Company’s energy logistics assets were located in the East Coast, Gulf Coast, Midwest, Rocky Mountains and West Coast regions of the United States and supplied a group of third-party customers, including oil companies, independent refiners, crude oil and petroleum product marketers, distributors and various industrial manufacturers. As of December 31, 2016, its assets consisted of 21 terminals in 12 states; four rail transloading facilities, and the liquefied natural gas (LNG) Interest in connection with the LNG Facility.
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.
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