Critical Review: World Fuel Services Corporation (INT) & Global Partners (GLP)
World Fuel Services Corporation (NYSE: INT) and Global Partners (NYSE:GLP) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
This table compares World Fuel Services Corporation and Global Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|World Fuel Services Corporation||0.34%||5.60%||2.09%|
This is a summary of current ratings and recommmendations for World Fuel Services Corporation and Global Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|World Fuel Services Corporation||0||0||1||0||3.00|
World Fuel Services Corporation currently has a consensus price target of $48.00, indicating a potential upside of 45.85%. Global Partners has a consensus price target of $18.00, indicating a potential upside of 11.11%. Given World Fuel Services Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe World Fuel Services Corporation is more favorable than Global Partners.
World Fuel Services Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Global Partners pays an annual dividend of $1.85 per share and has a dividend yield of 11.4%. World Fuel Services Corporation pays out 15.7% of its earnings in the form of a dividend. Global Partners pays out -39.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. World Fuel Services Corporation has increased its dividend for 2 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
World Fuel Services Corporation has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Global Partners has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
Earnings and Valuation
This table compares World Fuel Services Corporation and Global Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|World Fuel Services Corporation||$31.47 billion||0.07||$259.20 million||$1.53||21.51|
|Global Partners||$8.70 billion||0.06||$233.68 million||($4.73)||-3.42|
World Fuel Services Corporation has higher revenue and earnings than Global Partners. Global Partners is trading at a lower price-to-earnings ratio than World Fuel Services Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
91.8% of World Fuel Services Corporation shares are owned by institutional investors. Comparatively, 47.5% of Global Partners shares are owned by institutional investors. 2.3% of World Fuel Services Corporation shares are owned by insiders. Comparatively, 41.5% of Global Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
World Fuel Services Corporation beats Global Partners on 11 of the 16 factors compared between the two stocks.
About World Fuel Services Corporation
World Fuel Services Corporation is engaged in providing aviation, marine and land energy, logistics and technology solutions to customers and suppliers around the world. The Company operates through three segments: Aviation, Marine and Land. In its Aviation segment, the Company offers fuel and related products and services. In its land segment, it offers fuel, crude oil, lubricants, power solutions through its global energy management service offerings, natural gas and related products and services to customers. Under marine segment, it offers fuel, lubricants and related products and services to customers, including international container and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the United States and foreign Governments, as well as other fuel suppliers. It offers solutions, such as oil and energy procurement, distribution and storage, financial solutions and consulting services.
About Global Partners
Global Partners LP is a midstream logistics and marketing company. It is engaged in the purchasing, selling, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, natural gas and propane. Its segments include Wholesale, Gasoline Distribution and Station Operations and Commercial. In Wholesale segment, the Company engages in the logistics of selling, gathering, storage and transportation of refined petroleum products, renewable fuels, crude oil and propane. In Gasoline Distribution and Station Operations segment, gasoline distribution includes sales of branded and unbranded gasoline to gasoline station operators and sub-jobbers. The Commercial segment includes sales and deliveries to end user customers in the public sector and to commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil, bunker fuel and natural gas.
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