Financial Review: Genesis Energy (GEL) versus Longwei Petroleum Investment (LPIH)

Genesis Energy (NYSE:GEL) and Longwei Petroleum Investment (OTCMKTS:LPIH) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Dividends

Genesis Energy pays an annual dividend of $2.16 per share and has a dividend yield of 9.3%. Longwei Petroleum Investment does not pay a dividend. Genesis Energy pays out 203.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Genesis Energy and Longwei Petroleum Investment’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genesis Energy $2.03 billion 1.40 $82.64 million $1.06 21.92
Longwei Petroleum Investment N/A N/A N/A N/A N/A

Genesis Energy has higher revenue and earnings than Longwei Petroleum Investment.

Insider & Institutional Ownership

74.7% of Genesis Energy shares are owned by institutional investors. 0.7% of Genesis Energy shares are owned by company insiders. Comparatively, 66.1% of Longwei Petroleum Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Genesis Energy and Longwei Petroleum Investment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genesis Energy 0 2 3 0 2.60
Longwei Petroleum Investment 0 0 0 0 N/A

Genesis Energy currently has a consensus price target of $27.75, indicating a potential upside of 19.41%. Given Genesis Energy’s higher possible upside, analysts clearly believe Genesis Energy is more favorable than Longwei Petroleum Investment.

Profitability

This table compares Genesis Energy and Longwei Petroleum Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genesis Energy 1.16% 5.92% 1.60%
Longwei Petroleum Investment N/A N/A N/A

Summary

Genesis Energy beats Longwei Petroleum Investment on 8 of the 10 factors compared between the two stocks.

About Genesis Energy

Genesis Energy, L.P. operates in the midstream segment of the crude oil and natural gas industry. The company's Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations; and in the deep-water pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico. This segment owns interests in approximately 1,431miles of crude oil pipelines located offshore in the Gulf of Mexico. Its Sodium Minerals and Sulfur Services processes high sulfur gas streams to remove sulfur for refineries. This segment provides services to 10 refining operations; and sells the by-product sodium hydrosulfide and caustic soda to industrial and commercial companies engages in the mining of base metals, such as copper and molybdenum, as well as in the production of pulp and paper. The company's Onshore Facilities and Transportation segment provides services to Gulf Coast crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products. It operates a suite of approximately 200 trucks, 400 trailers, 540 railcars, and terminals and tankage with 4.6 million barrels of storage capacity in various locations along the Gulf Coast. This segment also transports crude oil and carbon dioxide (CO2). It owns 5 onshore crude oil pipeline systems with approximately 600 miles of pipe located primarily in Alabama, Florida, Louisiana, Mississippi, Texas, and Wyoming; and 2 CO2 pipelines with approximately 270 miles of pipe. Its Marine Transportation segment offers waterborne transportation of petroleum products and crude oil in North America. This segment owns a fleet of 89 barges with a combined transportation capacity of 3.1 million barrels; and 42 push/tow boats. In addition, the company produces natural soda ash. Genesis Energy, LLC serves as a general partner of the company. Genesis Energy, L.P. was founded in 1996 and is headquartered in Houston, Texas.

About Longwei Petroleum Investment

Longwei Petroleum Investment Holding Limited, an energy company, engages in the wholesale distribution of finished petroleum products in the People's Republic of China. The company is involved in the transportation, storage, and sale of finished petroleum products, including diesel, gasoline, fuel oil, and solvents from various petroleum refineries. It also acts as a purchasing agent for other intermediaries; and operates two retail gas stations, which sells diesel and gasoline. The company markets its products to commercial, industrial, retail, and wholesale customers, including transportation companies, coal mining operators, power suppliers, large-scale gas stations, and small and independent gas stations. Longwei Petroleum Investment Holding Limited was founded in 1995 and is headquartered in Taiyuan, the People's Republic of China.

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