American Midstream Partners, (NYSE: AMID) and Tesoro Corporation (NYSE:ANDV) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 12.7%. Tesoro Corporation pays an annual dividend of $2.20 per share and has a dividend yield of 2.4%. Tesoro Corporation pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares American Midstream Partners, and Tesoro Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Midstream Partners, $296.02 million 2.31 $12.92 million N/A N/A
Tesoro Corporation N/A N/A N/A $2.81 33.01

American Midstream Partners, has higher revenue and earnings than Tesoro Corporation.

Analyst Recommendations

This is a summary of current ratings and price targets for American Midstream Partners, and Tesoro Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Midstream Partners, 0 0 3 0 3.00
Tesoro Corporation 0 3 14 0 2.82

American Midstream Partners, presently has a consensus target price of $18.50, indicating a potential upside of 42.31%. Tesoro Corporation has a consensus target price of $109.13, indicating a potential upside of 17.66%. Given American Midstream Partners,’s stronger consensus rating and higher probable upside, analysts plainly believe American Midstream Partners, is more favorable than Tesoro Corporation.

Institutional and Insider Ownership

44.1% of American Midstream Partners, shares are held by institutional investors. Comparatively, 70.7% of Tesoro Corporation shares are held by institutional investors. 5.4% of American Midstream Partners, shares are held by insiders. Comparatively, 0.9% of Tesoro Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

American Midstream Partners, has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Tesoro Corporation has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Profitability

This table compares American Midstream Partners, and Tesoro Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Midstream Partners, N/A -14.88% -2.43%
Tesoro Corporation 1.22% 5.24% 2.27%

American Midstream Partners, Company Profile

American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.

Tesoro Corporation Company Profile

Andeavor Corporation, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.

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