Financial Analysis: Western Gas Partners, (WES) versus Andeavor (ANDV)
Western Gas Partners, (NYSE: WES) and Andeavor (NASDAQ:ANDV) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Western Gas Partners, pays an annual dividend of $3.56 per share and has a dividend yield of 6.8%. Andeavor does not pay a dividend. Western Gas Partners, pays out 256.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Gas Partners, has increased its dividend for 9 consecutive years.
Institutional & Insider Ownership
59.4% of Western Gas Partners, shares are owned by institutional investors. 0.0% of Western Gas Partners, shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Western Gas Partners, and Andeavor’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Western Gas Partners,||$2.03 billion||3.94||$933.45 million||$1.39||37.71|
Western Gas Partners, has higher revenue and earnings than Andeavor.
This table compares Western Gas Partners, and Andeavor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Gas Partners,||28.81%||15.80%||7.66%|
This is a breakdown of current recommendations and price targets for Western Gas Partners, and Andeavor, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Gas Partners,||1||4||6||0||2.45|
Western Gas Partners, presently has a consensus price target of $62.00, suggesting a potential upside of 18.30%. Andeavor has a consensus price target of $116.25, suggesting a potential upside of 9.24%. Given Western Gas Partners,’s higher possible upside, equities research analysts plainly believe Western Gas Partners, is more favorable than Andeavor.
Western Gas Partners, beats Andeavor on 11 of the 13 factors compared between the two stocks.
Western Gas Partners, Company Profile
Western Gas Partners, LP is a master limited partnership (MLP) that acquires, owns, develops and operates midstream energy assets. The Company is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil in the United States. The Company provides midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. The Company’s operations and activities are managed by its general partner, which is indirectly controlled by Anadarko through Western Gas Equity Partners, LP (WGP). As of December 31, 2016, its assets and investments consisted of gathering systems, treating facilities, natural gas processing plants/trains, NGL pipelines, natural gas pipelines and oil pipelines. These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas.
Andeavor Company Profile
Andeavor, 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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