Andeavor Logistics (NYSE: ANDX) and Mplx (NYSE:MPLX) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
Institutional and Insider Ownership
41.3% of Andeavor Logistics shares are held by institutional investors. Comparatively, 32.2% of Mplx shares are held by institutional investors. 0.2% of Andeavor Logistics shares are held 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.
Andeavor Logistics pays an annual dividend of $4.06 per share and has a dividend yield of 9.3%. Mplx pays an annual dividend of $2.47 per share and has a dividend yield of 6.8%. Andeavor Logistics pays out 161.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mplx pays out 233.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mplx has raised its dividend for 4 consecutive years. Andeavor Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Andeavor Logistics and Mplx’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Andeavor Logistics and Mplx, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Andeavor Logistics presently has a consensus price target of $52.25, indicating a potential upside of 19.81%. Mplx has a consensus price target of $41.33, indicating a potential upside of 13.87%. Given Andeavor Logistics’ higher possible upside, analysts plainly believe Andeavor Logistics is more favorable than Mplx.
Risk & Volatility
Andeavor Logistics has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Mplx has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Earnings and Valuation
This table compares Andeavor Logistics and Mplx’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Andeavor Logistics||$3.21 billion||2.95||$373.00 million||$2.51||17.37|
|Mplx||$3.87 billion||7.45||$794.00 million||$1.06||34.25|
Mplx has higher revenue and earnings than Andeavor Logistics. Andeavor Logistics is trading at a lower price-to-earnings ratio than Mplx, indicating that it is currently the more affordable of the two stocks.
Mplx beats Andeavor Logistics on 9 of the 17 factors compared between the two stocks.
About Andeavor Logistics
Andeavor Logistics LP operates as a diversified midstream company in the United States. The Terminalling and Transportation segment comprises the Northwest Products Pipeline, including a regulated common carrier products pipeline running from Salt Lake City, Utah to Spokane, Washington and a jet fuel pipeline to the Salt Lake City International Airport; a regulated common carrier refined products pipeline system connecting its refinery to its terminals in Anchorage, Alaska; tankage and related equipment at the refinery; and crude oil and refined products terminals and storage facilities in the western, and southwest and midwestern U.S. This segment also consists of marine terminals in California and Washington; a rail-car unloading and petroleum coke handling facilities; marine terminals; a manifest rail facility; an asphalt trucking operation; a petroleum coke handling and storage facility; asphalt terminalling and processing services; and other pipelines, which transport products and crude oil from its refineries to nearby facilities in Salt Lake City and Los Angeles. The Gathering and Processing segment includes crude oil and natural gas pipeline gathering systems in the Bakken Shale/Williston Basin area of North Dakota and Montana; the Green River Basin, Uinta Basin, and Vermillion Basin in the states of Utah, Colorado, and Wyoming; the Delaware Basin in the Permian Basin area of West Texas and Southern New Mexico; and the Four Corners area of Northwestern New Mexico, as well as crude trucking operations, and gas processing and fractionation complexes. The Wholesale segment consists of bulk petroleum distribution facilities and a fleet of refined product delivery trucks. Tesoro Logistics GP, LLC operates as the general partner of the company. The company was formerly known as Tesoro Logistics LP and changed its name to Andeavor Logistics LP in August 2017. Andeavor Logistics LP was founded in 2010 and is headquartered in San Antonio, Texas.
MPLX LP owns, operates, develops, and acquires midstream energy infrastructure assets. It operates in two segments, Logistics and Storage, and Gathering and Processing segments. The company is involved in the gathering, processing, and transportation of natural gas; gathering, transportation, fractionation, storage, and marketing of natural gas liquids (NGLs); and gathering, transportation, and storage of crude oil and refined petroleum products. MPLX LP also engages in inland marine business, which transports light products, heavy oils, crude oil, renewable fuels, chemicals, and feedstocks in the Midwest and U.S. Gulf Coast regions through inland marine vessels. As of December 31, 2017, its assets included 1,613 miles and 2,360 miles of owned or leased and operated crude oil and product pipelines; partial ownership in 2,194 miles and 1,917 miles of crude oil and products pipelines; and a barge dock facility with approximately 78 thousand barrels per day (mbpd) of crude oil throughput capacity; crude oil and product storage facilities with approximately 18,642 thousands of barrels (mbbls) of available storage capacity. The company's assets also comprised 9 butane and propane storage caverns with approximately 2,755 mbbls of NGL storage capacity; 59 light products terminal facilities, 1 leased terminal, and partial ownership in 2 terminals, with a combined total shell capacity of approximately 23.8 million barrels; 18 tow boats and 232 barges; and gathering and processing infrastructure, with approximately 5.9 one billion cubic feet of natural gas per day (bcf/d) of gathering capacity, 8.0 bcf/d of natural gas processing capacity, and approximately 610 mbpd of fractionation capacity. MPLX GP LLC acts as the general partner of MPLX LP. MPLX LP was founded in 2012 and is based in Findlay, Ohio.
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