Analyzing NuStar GP (NSH) and Blueknight Energy Partners LP Common Stock (BKEP)

NuStar GP (NYSE: NSH) and Blueknight Energy Partners LP Common Stock (NASDAQ:BKEP) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Dividends

NuStar GP pays an annual dividend of $1.32 per share and has a dividend yield of 9.6%. Blueknight Energy Partners LP Common Stock pays an annual dividend of $0.58 per share and has a dividend yield of 20.9%. NuStar GP pays out 65.7% of its earnings in the form of a dividend. Blueknight Energy Partners LP Common Stock pays out -644.4% 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. Blueknight Energy Partners LP Common Stock is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

NuStar GP has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Blueknight Energy Partners LP Common Stock has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares NuStar GP and Blueknight Energy Partners LP Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NuStar GP 174.77% 21.96% 18.71%
Blueknight Energy Partners LP Common Stock 8.04% -6.79% 4.86%

Valuation & Earnings

This table compares NuStar GP and Blueknight Energy Partners LP Common Stock’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NuStar GP $51.56 million 11.41 $86.77 million $2.01 6.82
Blueknight Energy Partners LP Common Stock $181.94 million 0.61 $20.04 million ($0.09) -30.78

NuStar GP has higher earnings, but lower revenue than Blueknight Energy Partners LP Common Stock. Blueknight Energy Partners LP Common Stock is trading at a lower price-to-earnings ratio than NuStar GP, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for NuStar GP and Blueknight Energy Partners LP Common Stock, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NuStar GP 0 5 1 0 2.17
Blueknight Energy Partners LP Common Stock 0 2 1 0 2.33

NuStar GP currently has a consensus target price of $14.80, suggesting a potential upside of 8.03%. Blueknight Energy Partners LP Common Stock has a consensus target price of $4.33, suggesting a potential upside of 56.44%. Given Blueknight Energy Partners LP Common Stock’s stronger consensus rating and higher probable upside, analysts plainly believe Blueknight Energy Partners LP Common Stock is more favorable than NuStar GP.

Insider & Institutional Ownership

48.1% of NuStar GP shares are held by institutional investors. Comparatively, 45.4% of Blueknight Energy Partners LP Common Stock shares are held by institutional investors. 21.4% of NuStar GP shares are held by insiders. Comparatively, 1.7% of Blueknight Energy Partners LP Common Stock shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

NuStar GP beats Blueknight Energy Partners LP Common Stock on 10 of the 15 factors compared between the two stocks.

NuStar GP Company Profile

NuStar GP Holdings, LLC, through its ownership interests in NuStar Energy L.P., engages in the transportation of petroleum products and anhydrous ammonia. The company is also involved in the terminalling, storage, and marketing of petroleum products. It has pipelines in the United States; and terminal and storage facilities in the United States, Canada, Mexico, and the United Kingdom, as well as the Netherlands, including St. Eustatius in the Caribbean. The company was founded in 2000 and is headquartered in San Antonio, Texas.

Blueknight Energy Partners LP Common Stock Company Profile

Blueknight Energy Partners, L.P. provides integrated terminalling, gathering, and transportation services for companies engaged in the production, distribution, and marketing of liquid asphalt and crude oil products in the United States. The company's Asphalt Terminalling Services segment offers asphalt terminalling services, including storage, blending, processing, and throughput services for asphalt product and residual fuel oil. As of March 7, 2018, this segment had 56 terminals located in 26 states. Its Crude Oil Terminalling Services segment provides terminalling services, including storage, blending, processing, and throughput services for crude oil. This segment owns and operates 34 crude oil storage tanks with approximately 6.6 million barrels of storage capacity. The company's Crude Oil Pipeline Services segment owns and operates crude oil transportation system with a combined length of approximately 655 miles; and purchases crude oil from production leases in Oklahoma and markets those barrels at the Cushing Interchange. Its Crude Oil Trucking and Producer Field Services segment offers crude oil producer field services comprising gathering condensates from natural gas companies to hauling produced water to disposal wells; and producer field services, such as gas gathering pipeline maintenance, hot and cold fresh water delivery, chemical and downhole well treatment, wet oil cleanup, and separation facilities building and maintenance services. This segment owns or leases approximately 65 tanker trucks; and operates a producer service fleet of approximately 85 trucks. Blueknight Energy Partners G.P., L.L.C. operates as a general partner of the company. The company was formerly known as SemGroup Energy Partners, L.P. and changed its name to Blueknight Energy Partners, L.P. in December 2009. Blueknight Energy Partners, L.P. was founded in 2007 and is headquartered in Oklahoma City, Oklahoma.

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