CrossAmerica Partners (NYSE:CAPL – Get Free Report) and Murphy Oil (NYSE:MUR – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Profitability
This table compares CrossAmerica Partners and Murphy Oil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CrossAmerica Partners | 1.43% | -37.73% | 3.92% |
| Murphy Oil | 9.74% | 6.63% | 3.51% |
Risk & Volatility
CrossAmerica Partners has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Murphy Oil has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CrossAmerica Partners | 0 | 1 | 0 | 1 | 3.00 |
| Murphy Oil | 3 | 10 | 3 | 0 | 2.00 |
Murphy Oil has a consensus price target of $37.75, indicating a potential upside of 0.87%. Given Murphy Oil’s higher probable upside, analysts clearly believe Murphy Oil is more favorable than CrossAmerica Partners.
Valuation and Earnings
This table compares CrossAmerica Partners and Murphy Oil”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CrossAmerica Partners | $3.66 billion | 0.23 | $39.11 million | $1.37 | 16.11 |
| Murphy Oil | $2.72 billion | 1.97 | $104.23 million | $2.02 | 18.53 |
Murphy Oil has lower revenue, but higher earnings than CrossAmerica Partners. CrossAmerica 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.
Dividends
CrossAmerica Partners pays an annual dividend of $2.10 per share and has a dividend yield of 9.5%. Murphy Oil pays an annual dividend of $1.40 per share and has a dividend yield of 3.7%. CrossAmerica Partners pays out 153.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Murphy Oil pays out 69.3% of its earnings in the form of a dividend. Murphy Oil has increased its dividend for 5 consecutive years.
Institutional and Insider Ownership
24.1% of CrossAmerica Partners shares are owned by institutional investors. Comparatively, 78.3% of Murphy Oil shares are owned by institutional investors. 52.0% of CrossAmerica Partners shares are owned by insiders. Comparatively, 5.8% of Murphy Oil shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Murphy Oil beats CrossAmerica Partners on 12 of the 18 factors compared between the two stocks.
About CrossAmerica Partners
CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, operation of convenience stores, and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States. It operates in two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents, and company operated retail sites. The Retail segment is involved in the sale of convenience merchandise items; and retail sale of motor fuels at company operated retail sites and retail sites operated by commission agents. CrossAmerica GP LLC operates as the general partner of the company. The company was formerly known as Lehigh Gas Partners LP and changed its name to CrossAmerica Partners LP in October 2014. The company was founded in 1992 and is based in Allentown, Pennsylvania.
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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