Financial Analysis: Canadian Natural Resources (NYSE:CNQ) versus Martin Midstream Partners (NASDAQ:MMLP)

Martin Midstream Partners (NASDAQ:MMLP – Get Free Report) and Canadian Natural Resources (NYSE:CNQ – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Martin Midstream Partners and Canadian Natural Resources, as reported by MarketBeat.com.

Martin Midstream Partners currently has a consensus price target of $3.00, suggesting a potential upside of 38.89%. Canadian Natural Resources has a consensus price target of $57.00, suggesting a potential upside of 20.14%. Given Martin Midstream Partners’ higher possible upside, equities research analysts clearly believe Martin Midstream Partners is more favorable than Canadian Natural Resources.

Profitability

This table compares Martin Midstream Partners and Canadian Natural Resources’ net margins, return on equity and return on assets.

Dividends

Martin Midstream Partners pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Canadian Natural Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.8%. Martin Midstream Partners pays out -5.3% of its earnings in the form of a dividend. Canadian Natural Resources pays out 44.4% 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. Canadian Natural Resources has increased its dividend for 24 consecutive years. Canadian Natural Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Martin Midstream Partners has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

34.9% of Martin Midstream Partners shares are held by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are held by institutional investors. 17.0% of Martin Midstream Partners shares are held by company insiders. Comparatively, 5.0% of Canadian Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Martin Midstream Partners and Canadian Natural Resources”s top-line revenue, earnings per share and valuation.

Canadian Natural Resources has higher revenue and earnings than Martin Midstream Partners. Martin Midstream Partners is trading at a lower price-to-earnings ratio than Canadian Natural Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Canadian Natural Resources beats Martin Midstream Partners on 13 of the 16 factors compared between the two stocks.

About Martin Midstream Partners

(Get Free Report)

Martin Midstream Partners L.P., together with its subsidiaries, provides terminalling, processing, storage, and packaging services for petroleum products and by-products primarily in the United States. The company operates in four segments: Terminalling and Storage, Transportation, Sulfur Services, and Specialty Products. The company's Terminalling and Storage segment owns or operates various marine shore-based terminal facilities and specialty terminal facilities that provide storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products. This segment also offers land rental services to oil and gas companies, as well as storage and handling services for lubricants and fuels. Its Transportation segment operates various trucks and tank trailers; and inland marine tank barges, inland push boats, and articulated offshore tug and barge unit to transport petroleum products and by-products, petrochemicals, and chemicals. The company's Sulfur Services segment processes molten sulfur into prilled or pelletized sulfur, which is used in the production of fertilizers and industrial chemicals. Its Specialty Products segment stores, distributes, and transports natural gas liquids for wholesale deliveries to refineries, industrial natural gas liquid users, and propane retailers. Martin Midstream GP LLC serves as a general partner of the company. Martin Midstream Partners L.P. was incorporated in 2002 and is based in Kilgore, Texas.

About Canadian Natural Resources

(Get Free Report)

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.