Valero Energy Partners (VLP) & World Point Terminals (WPT) Critical Survey
Valero Energy Partners (NYSE: VLP) and World Point Terminals (NYSE:WPT) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.
Institutional & Insider Ownership
29.9% of Valero Energy Partners shares are held by institutional investors. Comparatively, 13.2% of World Point Terminals shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Valero Energy Partners and World Point Terminals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Valero Energy Partners||$412.55 million||6.97||$298.24 million||$2.95||14.30|
|World Point Terminals||N/A||N/A||N/A||$1.03||16.79|
Valero Energy Partners has higher revenue and earnings than World Point Terminals. Valero Energy Partners is trading at a lower price-to-earnings ratio than World Point Terminals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Valero Energy Partners has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, World Point Terminals has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Valero Energy Partners and World Point Terminals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valero Energy Partners||0||1||6||0||2.86|
|World Point Terminals||0||2||0||0||2.00|
Valero Energy Partners currently has a consensus target price of $53.43, suggesting a potential upside of 26.67%. World Point Terminals has a consensus target price of $17.00, suggesting a potential downside of 1.68%. Given Valero Energy Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Valero Energy Partners is more favorable than World Point Terminals.
This table compares Valero Energy Partners and World Point Terminals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Valero Energy Partners||55.29%||266.53%||22.74%|
|World Point Terminals||37.15%||19.57%||18.37%|
Valero Energy Partners pays an annual dividend of $1.82 per share and has a dividend yield of 4.3%. World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Valero Energy Partners pays out 61.7% of its earnings in the form of a dividend. World Point Terminals pays out 116.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Valero Energy Partners has raised its dividend for 2 consecutive years.
Valero Energy Partners beats World Point Terminals on 12 of the 13 factors compared between the two stocks.
Valero Energy Partners Company Profile
Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.
World Point Terminals Company Profile
World Point Terminals, LP owns, operates, develops and acquires liquid bulk storage terminals and other assets relating to the storage of petroleum products, including light refined products, heavy refined products and crude oil. The Company operates fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States. As of December 31, 2016, through its subsidiary, Center Point Terminal Company, LLC (Center Point), the Company owned and operated 15.6 million barrels of tankage at terminals, which are located in the East Coast, Gulf Coast and Midwest regions of the United States. The Company’s terminal facilities are located on waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with loading logistics. Its terminal facilities also have rail or pipeline access.
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