Blueknight Energy Partners L.P., L.L.C. (NASDAQ: BKEP) and Shell Midstream Partners, L.P. (NYSE:SHLX) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Blueknight Energy Partners L.P., L.L.C. pays an annual dividend of $0.58 per share and has a dividend yield of 10.1%. Shell Midstream Partners, L.P. pays an annual dividend of $1.22 per share and has a dividend yield of 4.4%. Blueknight Energy Partners L.P., L.L.C. pays out -446.2% of its earnings in the form of a dividend. Shell Midstream Partners, L.P. pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blueknight Energy Partners L.P., L.L.C. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Blueknight Energy Partners L.P., L.L.C. has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Shell Midstream Partners, L.P. has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

57.5% of Blueknight Energy Partners L.P., L.L.C. shares are owned by institutional investors. Comparatively, 43.8% of Shell Midstream Partners, L.P. shares are owned by institutional investors. 1.7% of Blueknight Energy Partners L.P., L.L.C. 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.

Profitability

This table compares Blueknight Energy Partners L.P., L.L.C. and Shell Midstream Partners, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blueknight Energy Partners L.P., L.L.C. 12.71% -12.45% 7.23%
Shell Midstream Partners, L.P. 87.22% 258.67% 28.64%

Valuation and Earnings

This table compares Blueknight Energy Partners L.P., L.L.C. and Shell Midstream Partners, L.P.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blueknight Energy Partners L.P., L.L.C. $183.18 million 1.20 $65.50 million ($0.13) -44.23
Shell Midstream Partners, L.P. $283.50 million 17.46 $160.60 million $1.24 22.50

Shell Midstream Partners, L.P. has higher revenue and earnings than Blueknight Energy Partners L.P., L.L.C.. Blueknight Energy Partners L.P., L.L.C. is trading at a lower price-to-earnings ratio than Shell Midstream Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Blueknight Energy Partners L.P., L.L.C. and Shell Midstream Partners, L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blueknight Energy Partners L.P., L.L.C. 0 0 0 0 N/A
Shell Midstream Partners, L.P. 0 1 4 0 2.80

Shell Midstream Partners, L.P. has a consensus price target of $34.80, suggesting a potential upside of 24.73%. Given Shell Midstream Partners, L.P.’s higher probable upside, analysts plainly believe Shell Midstream Partners, L.P. is more favorable than Blueknight Energy Partners L.P., L.L.C..

Summary

Shell Midstream Partners, L.P. beats Blueknight Energy Partners L.P., L.L.C. on 10 of the 14 factors compared between the two stocks.

Blueknight Energy Partners L.P., L.L.C. Company Profile

Blueknight Energy Partners, L.P. is a master limited partnership company. The Company manages its operations through four segments: asphalt terminaling services, crude oil terminaling and storage services, crude oil pipeline services, and crude oil trucking and producer field services. Asphalt terminaling services segment operations generally consist of fee based activities associated with providing storage, terminaling and throughput services for asphalt product and residual fuel oil. Crude oil terminaling and storage segment operations generally consist of fee based activities associated with providing storage, terminaling, and throughput services for crude oil. Crude oil pipeline services segment operations generally consist of fee-based activity associated with transporting crude oil products on pipelines. Crude oil trucking and producer field services segment operations generally consist of fee-based activity associated with transporting crude oil products on trucks.

Shell Midstream Partners, L.P. Company Profile

Shell Midstream Partners, L.P. is a master limited partnership company, which owns, operates, develops and acquires pipelines and other midstream assets. The Company conducts its operations through its subsidiary, Shell Midstream Operating, LLC. Its assets consist of interests in entities that own crude oil and refined products pipelines serving as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from those markets to demand centers. As of December 31, 2016, it owned interests in seven crude oil pipeline systems, three refined products systems, one natural gas gathering pipeline system and a crude tank storage and terminal system. Its pipeline and terminal systems include Zydeco crude oil system, Auger crude oil system, Mars crude oil system, Bengal product system, Poseidon crude oil system, Odyssey crude oil system, Proteus crude oil system and Endymion crude oil system.

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