Contrasting Superior Energy Services (SPN) & Ferrellgas Partners (FGP)

Ferrellgas Partners (NYSE: FGP) and Superior Energy Services (NYSE:SPN) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Profitability

This table compares Ferrellgas Partners and Superior Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ferrellgas Partners -2.96% N/A -3.53%
Superior Energy Services -24.59% -26.18% -9.41%

Dividends

Ferrellgas Partners pays an annual dividend of $0.40 per share and has a dividend yield of 9.8%. Superior Energy Services does not pay a dividend. Ferrellgas Partners pays out -66.7% of its earnings in the form of a dividend.

Risk and Volatility

Ferrellgas Partners has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Superior Energy Services has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Ferrellgas Partners and Superior Energy Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferrellgas Partners 2 2 0 0 1.50
Superior Energy Services 0 16 7 0 2.30

Ferrellgas Partners currently has a consensus price target of $5.00, suggesting a potential upside of 22.25%. Superior Energy Services has a consensus price target of $12.67, suggesting a potential upside of 42.96%. Given Superior Energy Services’ stronger consensus rating and higher possible upside, analysts plainly believe Superior Energy Services is more favorable than Ferrellgas Partners.

Institutional & Insider Ownership

6.5% of Ferrellgas Partners shares are held by institutional investors. 0.5% of Ferrellgas Partners shares are held by insiders. Comparatively, 3.5% of Superior Energy Services 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.

Earnings and Valuation

This table compares Ferrellgas Partners and Superior Energy Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ferrellgas Partners $1.93 billion 0.21 -$54.20 million ($0.60) -6.82
Superior Energy Services $1.45 billion 0.94 -$886.89 million ($2.46) -3.60

Ferrellgas Partners has higher revenue and earnings than Superior Energy Services. Ferrellgas Partners is trading at a lower price-to-earnings ratio than Superior Energy Services, indicating that it is currently the more affordable of the two stocks.

Summary

Ferrellgas Partners beats Superior Energy Services on 9 of the 16 factors compared between the two stocks.

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.

About Superior Energy Services

Superior Energy Services, Inc. provides a range of services and products to the energy industry related to the exploration, development and production of oil and natural gas. The Company’s segments include Drilling Products and Services, which rents and sells bottom hole assemblies, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, production and workover activities; Onshore Completion and Workover Services, which provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a range of well completion and maintenance services; Production Services, which provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, and remedial pumping services, and Technical Solutions, which provides services requiring specialized engineering, manufacturing or project planning.

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