Global Partners (NYSE:GLP) and Murphy Oil (NYSE:MUR) Head-To-Head Comparison

Global Partners (NYSE:GLP) and Murphy Oil (NYSE:MUR) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

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	14.90%	8.51%	4.48%

Volatility and Risk

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.

Dividends

Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 7.4%. Murphy Oil pays an annual dividend of $1.40 per share and has a dividend yield of 4.0%. Global Partners pays out 56.6% of its earnings in the form of a dividend. Murphy Oil pays out 43.6% 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.

Institutional & Insider 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 company insiders. Comparatively, 5.8% of Murphy Oil shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Global Partners and Murphy Oil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Partners	$18.56 billion	0.08	$79.22 million	$5.51	7.61
Murphy Oil	$2.72 billion	1.83	$104.23 million	$3.21	10.82

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.

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 price target of $46.00, suggesting a potential upside of 9.73%. Murphy Oil has a consensus price target of $39.75, suggesting a potential upside of 14.45%. Given Murphy Oil’s higher possible upside, analysts plainly believe Murphy Oil is more favorable than Global Partners.

Summary

Murphy Oil beats Global Partners on 9 of the 17 factors compared between the two stocks.

About Global Partners

Global Partners LP is an energy company that purchases, stores, transports and markets petroleum products and renewable fuels. Its products include gasoline, diesel and other distillates, residual fuel oil, and biofuels. The company operates an integrated network of fuel terminals, storage facilities and transportation assets, including pipelines and marine and truck transport capabilities. It also owns and operates gas stations and convenience stores, primarily in the northeastern United States.

About Murphy Oil

Murphy Oil Corporation is an independent oil and natural gas exploration and production company. It explores for and develops crude oil, natural gas and natural gas liquids, with operations focused on onshore areas of the United States and Canada and offshore areas in the Gulf of Mexico. The company traces its roots to 1950, when it was founded as Murphy Corporation. Over time, Murphy shifted its focus toward exploration and production and expanded its activities internationally, later concentrating its portfolio on North American assets.