Mplx (NYSE:MPLX) and Shell Midstream Partners (NYSE:SHLX) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
Valuation and Earnings
This table compares Mplx and Shell Midstream Partners' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Mplx | $9.04 billion | 2.97 | $1.03 billion | $2.32 | 11.17 |
Shell Midstream Partners | $503 million | 10.84 | $528 million | $1.67 | 8.30 |
Mplx has higher revenue and earnings than Shell Midstream Partners. Shell Midstream Partners is trading at a lower price-to-earnings ratio than Mplx, indicating that it is currently the more affordable of the two stocks.
Dividends
Mplx pays an annual dividend of $2.75 per share and has a dividend yield of 10.6%. Shell Midstream Partners pays an annual dividend of $1.84 per share and has a dividend yield of 13.3%. Mplx pays out 118.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shell Midstream Partners pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mplx has raised its dividend for 1 consecutive years and Shell Midstream Partners has raised its dividend for 1 consecutive years. Shell Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Mplx and Shell Midstream Partners' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Mplx | -26.09% | 19.33% | 6.90% |
Shell Midstream Partners | 104.82% | -1,010.10% | 22.68% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Mplx and Shell Midstream Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Mplx | 0 | 1 | 12 | 0 | 2.92 |
Shell Midstream Partners | 0 | 4 | 1 | 0 | 2.20 |
Mplx presently has a consensus price target of $24.4545, indicating a potential downside of 5.65%. Shell Midstream Partners has a consensus price target of $12.20, indicating a potential downside of 11.98%. Given Mplx's stronger consensus rating and higher possible upside, analysts plainly believe Mplx is more favorable than Shell Midstream Partners.
Institutional and Insider Ownership
29.0% of Mplx shares are owned by institutional investors. Comparatively, 27.5% of Shell Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Mplx has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Shell Midstream Partners has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.
Summary
Mplx beats Shell Midstream Partners on 9 of the 15 factors compared between the two stocks.