American Midstream Partners, (NYSE: AMID) and Suburban Propane Partners, L.P. (NYSE:SPH) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares American Midstream Partners, and Suburban Propane Partners, L.P.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Midstream Partners, $296.02 million 2.41 $12.92 million ($1.89) -7.17
Suburban Propane Partners, L.P. $1.15 billion 1.40 $229.21 million $0.45 58.69

Suburban Propane Partners, L.P. has higher revenue and earnings than American Midstream Partners,. American Midstream Partners, is trading at a lower price-to-earnings ratio than Suburban Propane Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for American Midstream Partners, and Suburban Propane Partners, L.P., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Midstream Partners, 0 2 1 0 2.33
Suburban Propane Partners, L.P. 1 1 1 0 2.00

American Midstream Partners, presently has a consensus target price of $16.33, suggesting a potential upside of 20.54%. Suburban Propane Partners, L.P. has a consensus target price of $27.33, suggesting a potential upside of 3.50%. Given American Midstream Partners,’s stronger consensus rating and higher possible upside, research analysts clearly believe American Midstream Partners, is more favorable than Suburban Propane Partners, L.P..

Dividends

American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 12.2%. Suburban Propane Partners, L.P. pays an annual dividend of $3.55 per share and has a dividend yield of 13.4%. American Midstream Partners, pays out -87.3% of its earnings in the form of a dividend. Suburban Propane Partners, L.P. pays out 788.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Midstream Partners, has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

42.1% of American Midstream Partners, shares are owned by institutional investors. Comparatively, 25.4% of Suburban Propane Partners, L.P. shares are owned by institutional investors. 5.4% of American Midstream Partners, shares are owned by insiders. Comparatively, 0.6% of Suburban Propane Partners, L.P. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

American Midstream Partners, has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Suburban Propane Partners, L.P. has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares American Midstream Partners, and Suburban Propane Partners, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Midstream Partners, -10.35% -19.39% -3.16%
Suburban Propane Partners, L.P. 2.46% 4.09% 1.25%

Summary

American Midstream Partners, beats Suburban Propane Partners, L.P. on 8 of the 15 factors compared between the two stocks.

About American Midstream Partners,

American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.

About Suburban Propane Partners, L.P.

Suburban Propane Partners, L.P. is a marketer and distributor of a range of products. The Company specializes in the distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. In support of its marketing and distribution operations, the Company installs and services a range of home comfort equipment, particularly in the areas of heating and ventilation. The Company conducts its business through Suburban Propane, L.P., which operates its propane business and assets (the Operating Partnership), and its direct and indirect subsidiaries. As of September 24, 2016, it had sold approximately 414.8 million gallons of propane and 30.9 million gallons of fuel oil and refined fuels to retail customers. The Company owns and operates a propane storage facility in Elk Grove, California.

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