Head-To-Head Contrast: Gibson Energy (OTCMKTS:GBNXF) versus NGL Energy Partners (NYSE:NGL)

Gibson Energy (OTCMKTS:GBNXF) and NGL Energy Partners (NYSE:NGL) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gibson Energy and NGL Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gibson Energy	0	4	4	1	2.67
NGL Energy Partners	0	1	0	1	3.00

Institutional & Insider Ownership

0.2% of Gibson Energy shares are held by institutional investors. Comparatively, 40.6% of NGL Energy Partners shares are held by institutional investors. 7.3% of NGL Energy Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Gibson Energy and NGL Energy Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gibson Energy	$7.65 billion	0.49	$141.45 million	$0.71	30.69
NGL Energy Partners	$3.16 billion	0.59	-$142.29 million	($2.84)	-5.26

Gibson Energy has higher revenue and earnings than NGL Energy Partners. NGL Energy Partners is trading at a lower price-to-earnings ratio than Gibson Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Gibson Energy has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, NGL Energy Partners has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Profitability

This table compares Gibson Energy and NGL Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gibson Energy	1.32%	18.20%	3.41%
NGL Energy Partners	-3.76%	-39.51%	3.90%

Summary

Gibson Energy beats NGL Energy Partners on 7 of the 13 factors compared between the two stocks.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.

About NGL Energy Partners

NGL Energy Partners LP engages in the transportation, storage, blending, and marketing of crude oil, natural gas liquids, refined products / renewables, and water solutions. The company operates in three segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics. The Water Solutions segment transports, treats, recycles, and disposes produced and flowback water generated from oil and natural gas production; aggregates and sells recovered crude oil; disposes solids, such as tank bottoms, and drilling fluid and muds, as well as performs truck and frac tank washouts; and sells produced water for reuse and recycle, and brackish non-potable water. The Crude Oil Logistics segment purchases crude oil from producers and marketers, and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs; and provides storage, terminaling, and transportation services through pipelines. The Liquids Logistics segment supplies natural gas liquids, refined petroleum products, and biodiesel to commercial, retail, and industrial customers in the United States and Canada through its 24 terminals, third-party storage and terminal facilities, and nine common carrier pipelines, as well as through fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma.