Magellan Midstream Partners (NYSE:MMP) and Blueknight Energy Partners (NASDAQ:BKEP) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Dividends
Magellan Midstream Partners pays an annual dividend of $4.11 per share and has a dividend yield of 9.9%. Blueknight Energy Partners pays an annual dividend of $0.16 per share and has a dividend yield of 7.1%. Magellan Midstream Partners pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magellan Midstream Partners has raised its dividend for 1 consecutive years and Blueknight Energy Partners has raised its dividend for 1 consecutive years.
Insider and Institutional Ownership
62.0% of Magellan Midstream Partners shares are held by institutional investors. Comparatively, 22.9% of Blueknight Energy Partners shares are held by institutional investors. 0.3% of Magellan Midstream Partners shares are held by company insiders. Comparatively, 1.0% of Blueknight Energy Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Magellan Midstream Partners has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Blueknight Energy Partners has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Magellan Midstream Partners and Blueknight Energy Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Magellan Midstream Partners | 1 | 8 | 13 | 0 | 2.55 |
Blueknight Energy Partners | 0 | 1 | 0 | 0 | 2.00 |
Magellan Midstream Partners presently has a consensus target price of $50.0526, suggesting a potential upside of 20.12%. Blueknight Energy Partners has a consensus target price of $2.00, suggesting a potential downside of 11.50%. Given Magellan Midstream Partners' stronger consensus rating and higher probable upside, equities analysts clearly believe Magellan Midstream Partners is more favorable than Blueknight Energy Partners.
Profitability
This table compares Magellan Midstream Partners and Blueknight Energy Partners' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Magellan Midstream Partners | 35.61% | 37.91% | 11.65% |
Blueknight Energy Partners | 6.48% | -7.10% | 6.94% |
Earnings and Valuation
This table compares Magellan Midstream Partners and Blueknight Energy Partners' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Magellan Midstream Partners | $2.73 billion | 3.41 | $1.02 billion | $4.76 | 8.75 |
Blueknight Energy Partners | $371.07 million | 0.25 | $18.41 million | N/A | N/A |
Magellan Midstream Partners has higher revenue and earnings than Blueknight Energy Partners.
Summary
Magellan Midstream Partners beats Blueknight Energy Partners on 12 of the 15 factors compared between the two stocks.