Contrasting Valero Energy Partners (NYSE:VLP) & Its Competitors

Valero Energy Partners (NYSE: VLP) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it weigh in compared to its peers? We will compare Valero Energy Partners to similar companies based on the strength of its analyst recommendations, dividends, earnings, valuation, institutional ownership, profitability and risk.

Dividends

Valero Energy Partners pays an annual dividend of $1.82 per share and has a dividend yield of 4.3%. Valero Energy Partners pays out 61.7% of its earnings in the form of a dividend. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.8% and pay out 171.7% of their earnings in the form of a dividend. Valero Energy Partners has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Valero Energy Partners and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Valero Energy Partners $412.55 million $298.24 million 14.28
Valero Energy Partners Competitors $5.66 billion $1.31 billion 35.53

Valero Energy Partners’ peers have higher revenue and earnings than Valero Energy Partners. Valero Energy Partners is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Valero Energy Partners and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valero Energy Partners 55.29% 266.53% 22.74%
Valero Energy Partners Competitors 17.34% 14.21% 5.49%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Valero Energy Partners and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valero Energy Partners 0 2 6 0 2.75
Valero Energy Partners Competitors 288 1775 2370 85 2.50

Valero Energy Partners presently has a consensus target price of $53.43, suggesting a potential upside of 26.85%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 23.94%. Given Valero Energy Partners’ stronger consensus rating and higher possible upside, research analysts plainly believe Valero Energy Partners is more favorable than its peers.

Risk & Volatility

Valero Energy Partners has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Valero Energy Partners’ peers have a beta of 1.39, indicating that their average share price is 39% more volatile than the S&P 500.

Insider & Institutional Ownership

29.9% of Valero Energy Partners shares are held by institutional investors. Comparatively, 57.4% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Valero Energy Partners peers beat Valero Energy Partners on 8 of the 15 factors compared.

About Valero Energy Partners

Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.

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