Neste OYJ (OTCMKTS:NTOIY – Get Free Report) and Martin Midstream Partners (NASDAQ:MMLP – Get Free Report) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Neste OYJ and Martin Midstream Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neste OYJ | 0 | 2 | 1 | 4 | 3.29 |
| Martin Midstream Partners | 1 | 1 | 0 | 0 | 1.50 |
Martin Midstream Partners has a consensus price target of $3.00, suggesting a potential upside of 37.61%. Given Martin Midstream Partners’ higher possible upside, analysts clearly believe Martin Midstream Partners is more favorable than Neste OYJ.
Risk & Volatility
Dividends
Neste OYJ pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. Martin Midstream Partners pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Neste OYJ pays out 2.6% of its earnings in the form of a dividend. Martin Midstream Partners pays out -5.3% 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. Martin Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
34.9% of Martin Midstream Partners shares are owned by institutional investors. 17.0% of Martin Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Neste OYJ and Martin Midstream Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neste OYJ | 7.35% | 19.90% | 9.16% |
| Martin Midstream Partners | -2.07% | N/A | -2.91% |
Earnings & Valuation
This table compares Neste OYJ and Martin Midstream Partners”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neste OYJ | $21.51 billion | 1.27 | $162.92 million | $1.15 | 15.41 |
| Martin Midstream Partners | $716.11 million | 0.12 | -$14.74 million | ($0.38) | -5.74 |
Neste OYJ has higher revenue and earnings than Martin Midstream Partners. Martin Midstream Partners is trading at a lower price-to-earnings ratio than Neste OYJ, indicating that it is currently the more affordable of the two stocks.
Summary
Neste OYJ beats Martin Midstream Partners on 11 of the 17 factors compared between the two stocks.
About Neste OYJ
Neste Oyj provides renewable diesel and sustainable aviation fuel in Finland, and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics to wholesale markets. The Oil Products segment produces, markets, and sells diesel, gasoline, aviation and marine fuels, light and heavy fuel oils, and gasoline components, as well as special fuels, such as small-engine gasoline, solvents, liquid gases, and bitumen. This segment serves retailers and distributors, oil majors and trading companies, petrochemicals companies, and companies marketing lubricants and solvents, as well as road transportation, non-road uses, aviation and marine sectors. The Marketing & Services segment markets and sells cleaner fuels and oil products, and associated services to private motorists, transport companies, customers in aviation, shipping, industrial and agricultural sectors, municipalities, farmers, and heating oil customers through a network of service stations, as well as direct sales and distributors. The Others segment offers engineering solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.
About Martin Midstream Partners
Martin Midstream Partners L.P., together with its subsidiaries, provides terminalling, processing, storage, and packaging services for petroleum products and by-products primarily in the United States. The company operates in four segments: Terminalling and Storage, Transportation, Sulfur Services, and Specialty Products. The company's Terminalling and Storage segment owns or operates various marine shore-based terminal facilities and specialty terminal facilities that provide storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products. This segment also offers land rental services to oil and gas companies, as well as storage and handling services for lubricants and fuels. Its Transportation segment operates various trucks and tank trailers; and inland marine tank barges, inland push boats, and articulated offshore tug and barge unit to transport petroleum products and by-products, petrochemicals, and chemicals. The company's Sulfur Services segment processes molten sulfur into prilled or pelletized sulfur, which is used in the production of fertilizers and industrial chemicals. Its Specialty Products segment stores, distributes, and transports natural gas liquids for wholesale deliveries to refineries, industrial natural gas liquid users, and propane retailers. Martin Midstream GP LLC serves as a general partner of the company. Martin Midstream Partners L.P. was incorporated in 2002 and is based in Kilgore, Texas.
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