Critical Survey: Pao Novatek (OTCMKTS:NOVKY) and Mplx (NYSE:MPLX)

Mplx (NYSE:MPLX – Get Free Report) and Pao Novatek (OTCMKTS:NOVKY – Get Free Report) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional and Insider Ownership

24.2% of Mplx shares are held by institutional investors. Comparatively, 8.0% of Pao Novatek shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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Profitability

This table compares Mplx and Pao Novatek’s net margins, return on equity and return on assets.

Dividends

Mplx pays an annual dividend of $4.30 per share and has a dividend yield of 7.2%. Pao Novatek pays an annual dividend of $4.63 per share and has a dividend yield of 12.1%. Mplx pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pao Novatek pays out 1.2% of its earnings in the form of a dividend. Mplx has increased its dividend for 9 consecutive years. Pao Novatek is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations for Mplx and Pao Novatek, as provided by MarketBeat.com.

Mplx presently has a consensus target price of $62.20, suggesting a potential upside of 4.78%. Given Mplx’s stronger consensus rating and higher probable upside, equities analysts clearly believe Mplx is more favorable than Pao Novatek.

Valuation and Earnings

This table compares Mplx and Pao Novatek”s gross revenue, earnings per share (EPS) and valuation.

Mplx has higher revenue and earnings than Pao Novatek. Pao Novatek is trading at a lower price-to-earnings ratio than Mplx, indicating that it is currently the more affordable of the two stocks.

Summary

Mplx beats Pao Novatek on 11 of the 14 factors compared between the two stocks.

About Mplx

(Get Free Report)

MPLX LP engages in the operation of midstream energy infrastructure and logistics assets, and distribution fuels services. It operates through the Crude Oil and Products Logistics and Natural Gas and NGL Services segments. The Crude Oil and Products Logistics segment transports, stores, distributes, and markets crude oil, asphalt, refined petroleum products, and water. The Natural Gas and NGL Services segment gathers, processes, and transports natural gas, and gathers, transports, fractionates, stores, and markets natural gas liquids (NGLs). The company was founded on March 27, 2012 and is headquartered in Findlay, OH.

About Pao Novatek

(Get Free Report)

PAO NOVATEK, an independent oil and gas company, engages in the acquisition, exploration, development, production, processing, marketing, and export of natural gas and liquid hydrocarbons. The company principally holds interests in reserves located in the Yamal-Nenets Autonomous Region, Western Siberia. It sells natural gas, stable gas condensate, gas condensate refined products, liquefied petroleum gas, crude oil, naphtha, diesel fuel, jet fuel, methanol, and petrol. The company also provides transportation, geological and geophysical research, repair and maintenance of energy equipment, and rent and other services; and operates retail stations. It sells its products in Russia, Europe, the Asia-Pacific region, the Middle East, North America, and internationally. PAO NOVATEK has a strategic cooperation agreement with Japan Bank for International Cooperation to cooperate on projects to produce hydrogen and ammonia, carbon capture, utilization, and storage technologies, as well as renewable energy projects in Russia. The company was formerly known as OAO NOVATEK and changed its name to PAO NOVATEK in October 2016. PAO NOVATEK was founded in 1994 and is based in Tarko-Sale, Russia.

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