SunCoke Energy Partners (NYSE: SXCP) and Sumitomo (OTCMKTS:SSUMY) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk & Volatility
SunCoke Energy Partners has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Sumitomo has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
This table compares SunCoke Energy Partners and Sumitomo’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|SunCoke Energy Partners
SunCoke Energy Partners pays an annual dividend of $2.38 per share and has a dividend yield of 15.4%. Sumitomo pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. SunCoke Energy Partners pays out 144.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sumitomo pays out 8.8% of its earnings in the form of a dividend. SunCoke Energy Partners has increased its dividend for 2 consecutive years. SunCoke Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares SunCoke Energy Partners and Sumitomo’s gross revenue, earnings per share and valuation.
||Earnings Per Share
|SunCoke Energy Partners
Sumitomo has higher revenue and earnings than SunCoke Energy Partners. Sumitomo is trading at a lower price-to-earnings ratio than SunCoke Energy Partners, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
11.4% of SunCoke Energy Partners shares are held by institutional investors. Comparatively, 0.1% of Sumitomo shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for SunCoke Energy Partners and Sumitomo, as provided by MarketBeat.com.
||Strong Buy Ratings
|SunCoke Energy Partners
SunCoke Energy Partners currently has a consensus target price of $21.00, suggesting a potential upside of 35.92%. Given SunCoke Energy Partners’ higher possible upside, equities analysts plainly believe SunCoke Energy Partners is more favorable than Sumitomo.
SunCoke Energy Partners beats Sumitomo on 11 of the 15 factors compared between the two stocks.
About SunCoke Energy Partners
SunCoke Energy Partners, L.P., a master limited partnership, produces and sells coke used in the blast furnace production of steel in the United States. It operates through two segments, Domestic Coke and Logistics. The company also provides metallurgical and thermal coal mixing and handling terminal services, as well as operates Convent Marine Terminal, an export terminal in the United States Gulf Coast located in Convent, Louisiana. In addition, it offers coal handling and/or mixing services to steel, coke, electric utility, and coal mining customers. The company was founded in 2012 and is headquartered in Lisle, Illinois. SunCoke Energy Partners, L.P. is a subsidiary of Sun Coal & Coke LLC.
Sumitomo Corporation imports, exports, and trades in various goods and commodities worldwide. The company's Metal Products segment provides steel products, including steel sheets and tubular products, as well as non-ferrous metal products, such as aluminum and titanium. Its Transportation & Construction Systems segment offers products and services related to ship, aerospace equipment, railway and other transportation systems, construction and mining equipment, forest machines, and industrial vehicles. This segment is also involved in the manufacture, distribution, and retail of automobile and automotive parts; and the provision of leasing services. The company's Environment & Infrastructure segment engages in the social infrastructure business, such as electric power, water supply, and sewerage systems; renewable energy business comprising solar photovoltaic, geothermal, and wind power generation; environmental business consisting of batteries and recycling activities; industrial infrastructure business, such as industrial facilities and equipment; and logistics, insurance, and industrial-park-related businesses. Its Media, ICT, Lifestyle Related Goods & Services segment engages in the areas of media, ICT, lifestyle/retail, food/food product, general materials and supplies, construction, and real estate businesses. The company's Mineral Resources, Energy, Chemical & Electronics segment engages in mineral resources, energy, basic chemicals, electronics, and life sciences businesses; trading of carbon products, steel making materials, petroleum, and natural gas, as well as commodity derivatives; and synthetic resin materials, organic/inorganic chemicals, electronic materials, and rare earth elements businesses. This segment is also involved in the pharmaceuticals, agricultural chemicals, fertilizers, pet supplies, and other businesses, as well as the provision of electronic manufacturing services. The company was founded in 1919 and is headquartered in Tokyo, Japan.
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