Andeavor Logistics (NYSE: ANDX) and Energy Transfer Partners (NYSE:ETP) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
This table compares Andeavor Logistics and Energy Transfer Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy Transfer Partners||8.24%||7.22%||2.95%|
Earnings and Valuation
This table compares Andeavor Logistics and Energy Transfer Partners’ 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||2.89||$373.00 million||$2.51||17.06|
|Energy Transfer Partners||$29.05 billion||0.74||$2.08 billion||$0.72||25.76|
Energy Transfer Partners has higher revenue and earnings than Andeavor Logistics. Andeavor Logistics is trading at a lower price-to-earnings ratio than Energy Transfer Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Andeavor Logistics and Energy Transfer Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy Transfer Partners||0||4||12||0||2.75|
Andeavor Logistics currently has a consensus price target of $52.25, indicating a potential upside of 22.02%. Energy Transfer Partners has a consensus price target of $24.79, indicating a potential upside of 33.62%. Given Energy Transfer Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Energy Transfer Partners is more favorable than Andeavor Logistics.
Risk & Volatility
Andeavor Logistics has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Energy Transfer Partners has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Andeavor Logistics pays an annual dividend of $4.06 per share and has a dividend yield of 9.5%. Energy Transfer Partners pays an annual dividend of $2.26 per share and has a dividend yield of 12.2%. 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. Energy Transfer Partners pays out 313.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
41.3% of Andeavor Logistics shares are owned by institutional investors. Comparatively, 64.1% of Energy Transfer Partners shares are owned by institutional investors. 0.2% of Andeavor Logistics shares are owned by insiders. Comparatively, 0.2% of Energy Transfer Partners shares are owned by 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.
Energy Transfer Partners beats Andeavor Logistics on 9 of the 16 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.
About Energy Transfer Partners
Energy Transfer Partners, L.P. engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States. The company's Intrastate Transportation and Storage segment transports natural gas from various natural gas producing areas through connections with other pipeline systems, as well as through its ET Fuel System and HPL System. This segment owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas. Its Interstate Transportation and Storage segment provides natural gas transportation and storage services; owns and operates approximately 11,800 miles of interstate natural gas pipelines; and has interests in various natural gas pipelines. The company's Midstream segment gathers, compresses, treats, blends, processes, and markets natural gas. It owns and operates natural gas and natural gas liquids (NGL) gathering pipelines, natural gas processing plants, natural gas treating facilities, and natural gas conditioning facilities. The company's NGL and Refined Products Transportation and Services segment transports mixed NGLs and other hydrocarbons; stores mixed NGLs, NGL products, and petrochemical products; and separates mixed NGL streams into purity products. This segment owns and operates various NGL pipelines, NGL and propane fractionation facilities, and NGL storage facilities. Its Crude Oil Transportation and Services segment engages in the transportation, terminalling, and acquisition and marketing of crude oil; and operates crude oil trunk and gathering pipelines. The company's All Other segment engages in the natural gas compression equipment business; provides natural gas compression equipment and compression services; manages coal and natural resources property, sells standing timber, and leases coal-related infrastructure facilities; and generates electrical power. Energy Transfer Partners, L.P. was founded in 1995 and is based in Dallas, Texas.
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