Financial Analysis: Sunoco (SUN) & Aegean Marine Petroleum Network (ANW)

Sunoco (NYSE: SUN) and Aegean Marine Petroleum Network (NYSE:ANW) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings for Sunoco and Aegean Marine Petroleum Network, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunoco 3 6 5 0 2.14
Aegean Marine Petroleum Network 0 1 2 0 2.67

Sunoco currently has a consensus price target of $31.17, indicating a potential upside of 16.13%. Aegean Marine Petroleum Network has a consensus price target of $5.33, indicating a potential upside of 87.13%. Given Aegean Marine Petroleum Network’s stronger consensus rating and higher possible upside, analysts plainly believe Aegean Marine Petroleum Network is more favorable than Sunoco.

Earnings and Valuation

This table compares Sunoco and Aegean Marine Petroleum Network’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sunoco $11.72 billion 0.23 $149.00 million $2.29 11.72
Aegean Marine Petroleum Network $5.67 billion 0.02 -$29.30 million ($0.53) -5.38

Sunoco has higher revenue and earnings than Aegean Marine Petroleum Network. Aegean Marine Petroleum Network is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Sunoco has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Aegean Marine Petroleum Network has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500.

Institutional and Insider Ownership

29.7% of Sunoco shares are owned by institutional investors. Comparatively, 60.0% of Aegean Marine Petroleum Network shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Sunoco pays an annual dividend of $3.30 per share and has a dividend yield of 12.3%. Aegean Marine Petroleum Network pays an annual dividend of $0.04 per share and has a dividend yield of 1.4%. Sunoco pays out 144.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aegean Marine Petroleum Network pays out -7.5% of its earnings in the form of a dividend. Sunoco has increased its dividend for 2 consecutive years. Sunoco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Sunoco and Aegean Marine Petroleum Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunoco -1.32% 21.37% 4.66%
Aegean Marine Petroleum Network -0.52% -1.72% -0.62%

Summary

Sunoco beats Aegean Marine Petroleum Network on 9 of the 15 factors compared between the two stocks.

About Sunoco

Sunoco LP, together with its subsidiaries, engages in the wholesale distribution and retail sale of motor fuels primarily in the United States. The company operates through two segments, Wholesale and Retail. It serves convenience stores and commission agent locations, contracted independent convenience store operators, and other commercial customers. The company also distributes other petroleum products, including propane and lubricating oils; and leases or subleases real estate properties. As of December 31, 2017, it operated 1,348 convenience stores and fuel outlets offering merchandise, food service, motor fuel, and other services in approximately 20 states. Sunoco GP LLC serves as the general partner of the company. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in October 2014. Sunoco LP is headquartered in Dallas, Texas.

About Aegean Marine Petroleum Network

Aegean Marine Petroleum Network Inc., together with its subsidiaries, operates as a marine fuel logistics company that markets and supplies refined marine fuel and lubricants to vessels in port, at sea, and on rivers worldwide. The company offers fueling services to ocean-going and a range of coastal vessels, including oil tankers, container ships, drybulk carriers, cruise ships, reefers, LNG/LPG carriers, car carriers, and ferries, as well as to marine fuel traders, brokers, and other end-users of marine fuel and lubricants. It also markets and distributes marine lubricants under the Alfa Marine Lubricants brand; and provides a range of shipping services, such as technical support and maintenance, insurance arrangement and handling, financial administration, and accounting services. As of December 31, 2016, the company owned and operated a fleet of 46 bunkering vessels, including 45 double hulls and 1 single hull special purpose vehicle; 15 double hull bunkering vessels with an aggregate carrying capacity of approximately 292,400 deadweight ton (dwt); operated 10 land-based storage facilities with an aggregate storage capacity of approximately 1,075,000 cubic meters; and operated 2 vessels as floating storage facility with a cargo carrying capacity of approximately 86,800 dwt. Aegean Marine Petroleum Network Inc. was founded in 1995 and is headquartered in Athens, Greece.

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