Western Refining Logistics, (NYSE: WNRL) and Semgroup Corporation (NYSE:SEMG) are both mid-cap oil & gas transportation services – nec companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation & Earnings

This table compares Western Refining Logistics, and Semgroup Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Western Refining Logistics, N/A N/A N/A $1.07 22.29
Semgroup Corporation $1.33 billion 1.57 $2.09 million $0.03 885.00

Semgroup Corporation has higher revenue and earnings than Western Refining Logistics,. Western Refining Logistics, is trading at a lower price-to-earnings ratio than Semgroup Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Western Refining Logistics, and Semgroup Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Refining Logistics, 3.05% 78.84% 12.72%
Semgroup Corporation 0.24% 3.46% 1.60%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Western Refining Logistics, and Semgroup Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Refining Logistics, 0 1 1 0 2.50
Semgroup Corporation 0 3 1 0 2.25

Western Refining Logistics, currently has a consensus target price of $35.00, suggesting a potential upside of 46.75%. Semgroup Corporation has a consensus target price of $32.33, suggesting a potential upside of 21.78%. Given Western Refining Logistics,’s stronger consensus rating and higher probable upside, research analysts plainly believe Western Refining Logistics, is more favorable than Semgroup Corporation.

Volatility and Risk

Western Refining Logistics, has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Semgroup Corporation has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.

Insider & Institutional Ownership

40.1% of Western Refining Logistics, shares are held by institutional investors. Comparatively, 92.3% of Semgroup Corporation shares are held by institutional investors. 0.8% of Semgroup Corporation shares are held by 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.

Dividends

Semgroup Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 6.8%. Western Refining Logistics, does not pay a dividend. Semgroup Corporation pays out 6,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Refining Logistics, has raised its dividend for 2 consecutive years and Semgroup Corporation has raised its dividend for 3 consecutive years.

Summary

Western Refining Logistics, beats Semgroup Corporation on 7 of the 13 factors compared between the two stocks.

Western Refining Logistics, Company Profile

Western Refining Logistics, LP owns, operates, develops, and acquires logistics and related assets and businesses to include terminals, storage tanks, pipelines and other logistics assets related to the terminaling, transportation, storage and distribution of crude oil and refined products. The Company’s segments include logistics and wholesale. The Company operates its logistics business and wholesale business under commercial and service agreements with Western Refining, Inc. (Western). Its logistics assets consist of pipeline and gathering infrastructure and terminalling, transportation and storage assets in the Southwest and the Upper Great Plains region. Its wholesale business purchases its petroleum fuels from Western, and its lubricants and additional petroleum fuels from third-party suppliers.

Semgroup Corporation Company Profile

SemGroup Corporation is a provider of gathering, transportation, storage, distribution, marketing and other midstream services to producers, refiners of petroleum products and other market participants located in the Midwest and Rocky Mountain regions of the United States and Canada. The Company’s segments include Crude Transportation, which operates crude oil pipelines and truck transportation businesses in the United States; Crude Facilities, which operates crude oil storage and terminal businesses in the United States; Crude Supply and Logistics, which operates a crude oil marketing business; SemGas, which provides natural gas gathering and processing services; SemCAMS, which operates natural gas processing and gathering facilities in Alberta, Canada; SemLogistics, which owns petroleum products storage facility in the United Kingdom, and SemMexico, which provides liquid asphalt cement products and product application services to the Mexican market, and Corporate and Other.

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