Golar LNG Partners (NASDAQ: GMLP) and Murphy USA (NYSE:MUSA) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Insider and Institutional Ownership
44.0% of Golar LNG Partners shares are owned by institutional investors. Comparatively, 93.2% of Murphy USA shares are owned by institutional investors. 7.3% of Murphy USA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Golar LNG Partners and Murphy USA, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golar LNG Partners||0||2||4||0||2.67|
Golar LNG Partners presently has a consensus target price of $23.60, suggesting a potential upside of 36.73%. Murphy USA has a consensus target price of $91.67, suggesting a potential upside of 29.78%. Given Golar LNG Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Golar LNG Partners is more favorable than Murphy USA.
Risk and Volatility
Golar LNG Partners has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Murphy USA has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 13.4%. Murphy USA does not pay a dividend. Golar LNG Partners pays out 123.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Golar LNG Partners and Murphy USA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Golar LNG Partners||$433.10 million||2.84||$129.28 million||$1.87||9.23|
|Murphy USA||$12.83 billion||0.19||$245.26 million||$6.91||10.22|
Murphy USA has higher revenue and earnings than Golar LNG Partners. Golar LNG Partners is trading at a lower price-to-earnings ratio than Murphy USA, indicating that it is currently the more affordable of the two stocks.
This table compares Golar LNG Partners and Murphy USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golar LNG Partners||29.85%||17.19%||5.43%|
Murphy USA beats Golar LNG Partners on 9 of the 16 factors compared between the two stocks.
About Golar LNG Partners
Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term time charters. The Company operates through the LNG market segment. The Company’s fleet consists of approximately six FSRUs and over four LNG carriers. The Company’s FSRU vessels include Golar Spirit, Golar Winter, Golar Freeze, NR Satu, Golar Igloo and Golar Eskimo. Its FSRU vessels have a total capacity of approximately 846,000 cubic meters. The Company’s LNG carriers include Golar Mazo, Methane Princess, Golar Grand and Golar Maria. Its LNG carriers have a total capacity of over 564,400 cubic meters.
About Murphy USA
Murphy USA Inc. is engaged in the marketing of retail motor fuel products and merchandise through a chain of retail stores. The Company operates through the Marketing segment. The Marketing segment includes its retail marketing sites and product supply, and wholesale assets. As of December 31, 2016, its retail stores were located in 26 states, primarily in the Southwest, Southeast and Midwest the United States. Out of the total 1,401 stores, 1,152 were branded Murphy USA and 249 were Murphy Express locations, as of December 31, 2016. Its retail stores under the brand name Murphy USA participate in the Walmart discount program. The Walmart discount program offers a cents-off per gallon purchased for fuel when using specific payment methods as decided by Walmart and the Company. Its business also includes product supply and wholesale assets, including product distribution terminals and pipeline positions.
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