Analyzing NGL Energy Partners (NGL) and World Fuel Services (INT)

NGL Energy Partners (NYSE: NGL) and World Fuel Services (NYSE:INT) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Risk and Volatility

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NGL Energy Partners has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, World Fuel Services has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares NGL Energy Partners and World Fuel Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NGL Energy Partners $13.02 billion 0.12 $136.81 million $0.95 13.16
World Fuel Services $33.70 billion 0.06 -$170.20 million $1.86 14.75

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

Dividends

NGL Energy Partners pays an annual dividend of $1.56 per share and has a dividend yield of 12.5%. World Fuel Services pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. NGL Energy Partners pays out 164.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. World Fuel Services pays out 12.9% of its earnings in the form of a dividend. World Fuel Services has increased its dividend for 3 consecutive years.

Profitability

This table compares NGL Energy Partners and World Fuel Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NGL Energy Partners -0.97% -1.85% -0.57%
World Fuel Services -0.51% 6.45% 2.26%

Institutional & Insider Ownership

65.6% of NGL Energy Partners shares are held by institutional investors. Comparatively, 89.5% of World Fuel Services shares are held by institutional investors. 2.2% of World Fuel Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for NGL Energy Partners and World Fuel Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NGL Energy Partners 0 2 3 0 2.60
World Fuel Services 1 1 1 0 2.00

NGL Energy Partners presently has a consensus target price of $15.80, suggesting a potential upside of 26.40%. World Fuel Services has a consensus target price of $38.00, suggesting a potential upside of 38.48%. Given World Fuel Services’ higher possible upside, analysts plainly believe World Fuel Services is more favorable than NGL Energy Partners.

Summary

World Fuel Services beats NGL Energy Partners on 11 of the 17 factors compared between the two stocks.

About NGL Energy Partners

NGL Energy Partners LP, through its subsidiaries, engages in the crude oil logistics, water solutions, liquids, retail propane, and refined products and renewables businesses in the United States. The Crude Oil Logistics segment purchases crude oil from producers and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs. The Water Solutions segment is involved in the treatment and disposal of wastewater generated from crude oil and natural gas production operations; disposal of solids, such as tank bottoms, drilling fluids, and performs truck and frac tank washouts; and sale of recovered hydrocarbons. The Liquids segment supplies natural gas liquids to retailers, wholesalers, refiners, and petrochemical plants in the United States and Canada, as well as offers terminaling and storage services through its 21 terminals in the United States. The Retail Propane segment sells propane, distillates, and equipment and supplies to end users consisting of residential, agricultural, commercial, and industrial customers, as well as re-sellers. The Refined Products and Renewables segment markets gasoline, diesel, ethanol, and biodiesel products; and purchase and delivers refined petroleum and renewable products. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma.

About World Fuel Services

World Fuel Services Corporation engages in the distribution of fuel, and related products and services in the aviation, marine, and land transportation industries worldwide. Its Aviation segment offers fuel management; price risk management; ground handling; dispatch; and international trip planning services, such as flight plans, weather reports, and overflight permits. This segment supplies fuel, and related products and services to commercial airlines, second and third tier airlines, cargo and cost carriers, airports, fixed based operators, corporate fleets, fractional operators, private aircraft, military fleets, and to the United States (U.S.) and foreign governments, as well as intergovernmental organizations. The company's Land segment distributes fuel, heating oil, propane, natural gas, lubricants, and related products and services to petroleum distributors and retail petroleum operators, as well as for industrial, commercial, residential, and government customers. This segment also offers management services for procuring fuel and price risk management; advisory and fulfillment solutions related to power, natural gas, and other energy products; and card payment solutions, government payment systems for fuel procurement, merchant processing services, payment solutions for tolls, and commercial payment programs. Its Marine segment markets fuel, lubricants, and related products and services to international container and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. Its marine fuel-related services include management services to procure fuel, cost control, quality control, claims management, and card payment and related processing services. This segment also engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was founded in 1984 and is headquartered in Miami, Florida.

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