Blueknight Energy Partners LP Common Stock (NYSE: BPMP) and BP Midstream Partners (NYSE:BPMP) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Dividends

Blueknight Energy Partners LP Common Stock pays an annual dividend of $0.32 per share and has a dividend yield of 12.5%. BP Midstream Partners pays an annual dividend of $1.09 per share and has a dividend yield of 5.5%. Blueknight Energy Partners LP Common Stock pays out -355.6% of its earnings in the form of a dividend. BP Midstream Partners pays out 519.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blueknight Energy Partners LP Common Stock is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

47.1% of Blueknight Energy Partners LP Common Stock shares are held by institutional investors. Comparatively, 51.3% of BP Midstream Partners shares are held by institutional investors. 1.7% of Blueknight Energy Partners LP Common Stock shares are held by insiders. 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 Blueknight Energy Partners LP Common Stock and BP Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blueknight Energy Partners LP Common Stock $181.94 million 0.49 $20.04 million ($0.09) -28.33
BP Midstream Partners $108.15 million 19.25 $60.87 million $0.21 94.62

BP Midstream Partners has lower revenue, but higher earnings than Blueknight Energy Partners LP Common Stock. Blueknight Energy Partners LP Common Stock is trading at a lower price-to-earnings ratio than BP Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Blueknight Energy Partners LP Common Stock and BP Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blueknight Energy Partners LP Common Stock 4.51% -4.82% 3.43%
BP Midstream Partners 85.62% 20.65% 19.84%

Analyst Recommendations

This is a summary of recent ratings and price targets for Blueknight Energy Partners LP Common Stock and BP Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blueknight Energy Partners LP Common Stock 0 2 2 0 2.50
BP Midstream Partners 0 5 4 0 2.44

Blueknight Energy Partners LP Common Stock currently has a consensus target price of $4.00, suggesting a potential upside of 56.86%. BP Midstream Partners has a consensus target price of $22.33, suggesting a potential upside of 12.40%. Given Blueknight Energy Partners LP Common Stock’s stronger consensus rating and higher probable upside, equities analysts clearly believe Blueknight Energy Partners LP Common Stock is more favorable than BP Midstream Partners.

Summary

BP Midstream Partners beats Blueknight Energy Partners LP Common Stock on 9 of the 15 factors compared between the two stocks.

About Blueknight Energy Partners LP Common Stock

Blueknight Energy Partners, L.P. provides integrated terminalling, gathering, and transportation services for companies engaged in the production, distribution, and marketing of liquid asphalt and crude oil products in the United States. The company's Asphalt Terminalling Services segment offers asphalt terminalling services, including storage, blending, processing, and throughput services for asphalt product and residual fuel oil. As of March 7, 2018, this segment had 56 terminals located in 26 states. Its Crude Oil Terminalling Services segment provides terminalling services, including storage, blending, processing, and throughput services for crude oil. This segment owns and operates 34 crude oil storage tanks with approximately 6.6 million barrels of storage capacity. The company's Crude Oil Pipeline Services segment owns and operates crude oil transportation system with a combined length of approximately 655 miles; and purchases crude oil from production leases in Oklahoma and markets those barrels at the Cushing Interchange. Its Crude Oil Trucking and Producer Field Services segment offers crude oil producer field services comprising gathering condensates from natural gas companies to hauling produced water to disposal wells; and producer field services, such as gas gathering pipeline maintenance, hot and cold fresh water delivery, chemical and downhole well treatment, wet oil cleanup, and separation facilities building and maintenance services. This segment owns or leases approximately 65 tanker trucks; and operates a producer service fleet of approximately 85 trucks. Blueknight Energy Partners G.P., L.L.C. operates as a general partner of the company. The company was formerly known as SemGroup Energy Partners, L.P. and changed its name to Blueknight Energy Partners, L.P. in December 2009. Blueknight Energy Partners, L.P. was founded in 2007 and is headquartered in Oklahoma City, Oklahoma.

About BP Midstream Partners

BP Midstream Partners LP owns, acquires, operates, and develops pipelines and other midstream assets. It owns an onshore crude oil pipeline system, onshore refined products pipeline system, onshore diluent pipeline system, and offshore natural gas pipeline system, as well as interests in four offshore crude oil pipeline systems located in the United States. The company was founded in 2017 and is based in Houston, Texas. BP Midstream Partners LP is a subsidiary of BP Pipelines (North America) Inc.

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