Global Partners (NYSE:GLP – Get Free Report) and Murphy Oil (NYSE:MUR – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Analyst Ratings
This is a summary of current ratings and recommmendations for Global Partners and Murphy Oil, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Partners | 0 | 2 | 1 | 0 | 2.33 |
| Murphy Oil | 2 | 8 | 4 | 1 | 2.27 |
Global Partners presently has a consensus target price of $46.00, suggesting a potential upside of 0.24%. Murphy Oil has a consensus target price of $39.75, suggesting a potential downside of 0.97%. Given Global Partners’ stronger consensus rating and higher probable upside, research analysts plainly believe Global Partners is more favorable than Murphy Oil.
Profitability
This table compares Global Partners and Murphy Oil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Partners | 0.91% | 30.87% | 4.92% |
| Murphy Oil | 9.74% | 6.63% | 3.51% |
Dividends
Global Partners pays an annual dividend of $3.14 per share and has a dividend yield of 6.8%. Murphy Oil pays an annual dividend of $1.40 per share and has a dividend yield of 3.5%. Global Partners pays out 64.0% of its earnings in the form of a dividend. Murphy Oil pays out 69.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Partners has increased its dividend for 5 consecutive years and Murphy Oil has increased its dividend for 5 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
38.1% of Global Partners shares are held by institutional investors. Comparatively, 78.3% of Murphy Oil shares are held by institutional investors. 41.5% of Global Partners shares are held by insiders. Comparatively, 5.8% of Murphy Oil shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Global Partners has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Murphy Oil has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.
Valuation and Earnings
This table compares Global Partners and Murphy Oil”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Partners | $21.46 billion | 0.07 | $79.22 million | $4.91 | 9.35 |
| Murphy Oil | $2.99 billion | 1.92 | $104.23 million | $2.02 | 19.87 |
Murphy Oil has lower revenue, but higher earnings than Global Partners. Global Partners is trading at a lower price-to-earnings ratio than Murphy Oil, indicating that it is currently the more affordable of the two stocks.
Summary
Global Partners beats Murphy Oil on 10 of the 17 factors compared between the two stocks.
About Global Partners
Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.
About Murphy Oil
Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.
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