Critical Comparison: BP p.l.c. (BP) vs. Suburban Propane Partners, L.P. (SPH)
BP p.l.c. (NYSE: BP) and Suburban Propane Partners, L.P. (NYSE:SPH) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
This is a breakdown of recent recommendations for BP p.l.c. and Suburban Propane Partners, L.P., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Suburban Propane Partners, L.P.||1||1||1||0||2.00|
BP p.l.c. currently has a consensus target price of $36.58, indicating a potential upside of 6.42%. Suburban Propane Partners, L.P. has a consensus target price of $27.33, indicating a potential upside of 11.29%. Given Suburban Propane Partners, L.P.’s higher probable upside, analysts clearly believe Suburban Propane Partners, L.P. is more favorable than BP p.l.c..
Earnings & Valuation
This table compares BP p.l.c. and Suburban Propane Partners, L.P.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BP p.l.c.||$209.85 billion||0.54||$19.97 billion||$1.15||29.89|
|Suburban Propane Partners, L.P.||$1.15 billion||1.30||$229.21 million||$0.45||54.58|
BP p.l.c. has higher revenue and earnings than Suburban Propane Partners, L.P.. BP p.l.c. is trading at a lower price-to-earnings ratio than Suburban Propane Partners, L.P., indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
BP p.l.c. has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Suburban Propane Partners, L.P. has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Institutional and Insider Ownership
10.1% of BP p.l.c. shares are held by institutional investors. Comparatively, 25.6% of Suburban Propane Partners, L.P. shares are held by institutional investors. 1.0% of BP p.l.c. shares are held by company insiders. Comparatively, 0.6% of Suburban Propane Partners, L.P. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.9%. Suburban Propane Partners, L.P. pays an annual dividend of $3.55 per share and has a dividend yield of 14.5%. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suburban Propane Partners, L.P. pays out 788.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BP p.l.c. has raised its dividend for 2 consecutive years.
This table compares BP p.l.c. and Suburban Propane Partners, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Suburban Propane Partners, L.P.||2.46%||4.09%||1.25%|
BP p.l.c. beats Suburban Propane Partners, L.P. on 10 of the 17 factors compared between the two stocks.
About BP p.l.c.
BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.
About Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. is a marketer and distributor of a range of products. The Company specializes in the distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. In support of its marketing and distribution operations, the Company installs and services a range of home comfort equipment, particularly in the areas of heating and ventilation. The Company conducts its business through Suburban Propane, L.P., which operates its propane business and assets (the Operating Partnership), and its direct and indirect subsidiaries. As of September 24, 2016, it had sold approximately 414.8 million gallons of propane and 30.9 million gallons of fuel oil and refined fuels to retail customers. The Company owns and operates a propane storage facility in Elk Grove, California.
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