Murphy Oil (NYSE:MUR – Get Free Report) and Global Partners (NYSE:GLP – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Analyst Ratings
This is a summary of recent recommendations for Murphy Oil and Global Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Murphy Oil | 2 | 8 | 4 | 1 | 2.27 |
| Global Partners | 0 | 2 | 1 | 0 | 2.33 |
Murphy Oil presently has a consensus price target of $39.75, indicating a potential upside of 10.36%. Global Partners has a consensus price target of $46.00, indicating a potential upside of 4.24%. Given Murphy Oil’s higher probable upside, equities analysts clearly believe Murphy Oil is more favorable than Global Partners.
Dividends
Murphy Oil pays an annual dividend of $1.40 per share and has a dividend yield of 3.9%. Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 7.1%. Murphy Oil pays out 43.6% of its earnings in the form of a dividend. Global Partners pays out 63.5% 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. Murphy Oil has increased its dividend for 5 consecutive years and Global Partners has increased its dividend for 5 consecutive years.
Risk and Volatility
Murphy Oil has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Global Partners has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Earnings & Valuation
This table compares Murphy Oil and Global Partners”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Murphy Oil | $2.72 billion | 1.90 | $104.23 million | $3.21 | 11.22 |
| Global Partners | $18.56 billion | 0.08 | $79.22 million | $4.91 | 8.99 |
Murphy Oil has higher earnings, but lower revenue than Global Partners. Global Partners is trading at a lower price-to-earnings ratio than Murphy Oil, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Murphy Oil and Global Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Murphy Oil | 14.90% | 8.41% | 4.43% |
| Global Partners | 0.91% | 30.87% | 4.92% |
Institutional and Insider Ownership
78.3% of Murphy Oil shares are owned by institutional investors. Comparatively, 38.1% of Global Partners shares are owned by institutional investors. 5.8% of Murphy Oil shares are owned by insiders. Comparatively, 41.5% of Global Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Murphy Oil beats Global Partners on 9 of the 17 factors compared between the two stocks.
About Murphy Oil
Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.
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.
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