EQT (NYSE:EQT) vs. Global Partners (NYSE:GLP) Critical Survey

Global Partners (NYSE:GLP) and EQT (NYSE:EQT) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Volatility & Risk

Global Partners has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, EQT has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

38.1% of Global Partners shares are owned by institutional investors. Comparatively, 90.8% of EQT shares are owned by institutional investors. 41.5% of Global Partners shares are owned by insiders. Comparatively, 0.7% of EQT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 6.3%. EQT pays an annual dividend of $0.66 per share and has a dividend yield of 1.3%. Global Partners pays out 63.5% of its earnings in the form of a dividend. EQT pays out 15.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Partners has raised its dividend for 5 consecutive years and EQT has raised its dividend for 3 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Global Partners and EQT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Partners	0.91%	30.87%	4.92%
EQT	28.44%	9.31%	6.27%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Global Partners and EQT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Partners	0	2	1	0	2.33
EQT	0	7	19	2	2.82

Global Partners presently has a consensus target price of $46.00, indicating a potential downside of 6.59%. EQT has a consensus target price of $68.09, indicating a potential upside of 29.00%. Given EQT’s stronger consensus rating and higher possible upside, analysts plainly believe EQT is more favorable than Global Partners.

Valuation and Earnings

This table compares Global Partners and EQT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Partners	$21.46 billion	0.08	$79.22 million	$4.91	10.03
EQT	$9.48 billion	3.48	$2.04 billion	$4.31	12.25

EQT has lower revenue, but higher earnings than Global Partners. Global Partners is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.

Summary

EQT beats Global Partners on 11 of the 18 factors compared between the two stocks.

About Global Partners

Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.