Ferrellgas Partners (FGP) versus McDermott International (MDR) Head-To-Head Analysis
McDermott International (NYSE: MDR) and Ferrellgas Partners (NYSE:FGP) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
McDermott International has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Ferrellgas Partners has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
This table compares McDermott International and Ferrellgas Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|McDermott International||$2.64 billion||0.84||$34.11 million||$0.54||14.50|
|Ferrellgas Partners||$1.93 billion||0.21||-$54.20 million||($0.60)||-7.08|
McDermott International has higher revenue and earnings than Ferrellgas Partners. Ferrellgas Partners is trading at a lower price-to-earnings ratio than McDermott International, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for McDermott International and Ferrellgas Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
McDermott International presently has a consensus price target of $7.39, suggesting a potential downside of 5.65%. Ferrellgas Partners has a consensus price target of $5.00, suggesting a potential upside of 17.65%. Given Ferrellgas Partners’ higher possible upside, analysts clearly believe Ferrellgas Partners is more favorable than McDermott International.
Insider and Institutional Ownership
86.1% of McDermott International shares are owned by institutional investors. Comparatively, 6.3% of Ferrellgas Partners shares are owned by institutional investors. 1.3% of McDermott International shares are owned by insiders. Comparatively, 0.5% of Ferrellgas Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares McDermott International and Ferrellgas Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ferrellgas Partners pays an annual dividend of $0.40 per share and has a dividend yield of 9.4%. McDermott International does not pay a dividend. Ferrellgas Partners pays out -66.7% of its earnings in the form of a dividend.
McDermott International beats Ferrellgas Partners on 13 of the 16 factors compared between the two stocks.
About McDermott International
McDermott International, Inc. is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects. It operates through three segments: the Americas, Europe and Africa (AEA), the Middle East (MEA) and Asia (ASA). As of December 31, 2016, operated in approximately 20 countries across the Americas, Europe, Africa, the Middle East, Asia and Australia, its integrated resources include a diversified fleet of marine vessels, fabrication facilities and engineering offices. It support its activities with project management and procurement services, while utilizing its fully integrated capabilities in both shallow water and deepwater construction.
About Ferrellgas Partners
Ferrellgas Partners, L.P. is engaged in the retail distribution of propane and related equipment sales, and midstream operations, which include crude oil logistics. The Company’s segments include propane and related equipment sales, midstream operations-crude oil logistics, and corporate and other. The propane and related equipment sales segment consists of the distribution of propane and related equipment and supplies. The midstream operations-crude oil logistics segment is engaged in providing crude oil transportation and logistics services. The corporate and other segment includes midstream operations-water solutions. The Company’s two subsidiaries include Ferrellgas Partners Finance Corp. and the operating partnership. Its general partner performs all management functions for the Company and holds general partner interest in Ferrellgas Partners and the operating partnership. It is a distributor of propane and related equipment and supplies to customers in the United States.
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