Core Laboratories (NYSE:CLB) and SemGroup (NYSE:SEMG) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Dividends

Core Laboratories pays an annual dividend of $2.20 per share and has a dividend yield of 2.1%. SemGroup pays an annual dividend of $1.89 per share and has a dividend yield of 9.1%. Core Laboratories pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SemGroup pays out -787.5% of its earnings in the form of a dividend. SemGroup is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Core Laboratories and SemGroup’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Core Laboratories 13.32% 64.13% 16.55%
SemGroup -2.17% 2.44% 0.75%

Volatility & Risk

Core Laboratories has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, SemGroup has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Core Laboratories and SemGroup, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Core Laboratories 2 8 5 0 2.20
SemGroup 1 7 3 0 2.18

Core Laboratories currently has a consensus price target of $113.33, indicating a potential upside of 5.67%. SemGroup has a consensus price target of $27.11, indicating a potential upside of 30.22%. Given SemGroup’s higher possible upside, analysts clearly believe SemGroup is more favorable than Core Laboratories.

Earnings and Valuation

This table compares Core Laboratories and SemGroup’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Core Laboratories $659.81 million 7.19 $83.12 million $2.00 53.63
SemGroup $2.08 billion 0.79 -$17.15 million ($0.24) -86.75

Core Laboratories has higher earnings, but lower revenue than SemGroup. SemGroup is trading at a lower price-to-earnings ratio than Core Laboratories, indicating that it is currently the more affordable of the two stocks.

Summary

Core Laboratories beats SemGroup on 9 of the 14 factors compared between the two stocks.

About Core Laboratories

Core Laboratories N.V. provides reservoir description, and production enhancement services and products to the oil and gas industry in the United States, Canada, and internationally. It operates in two segments, Reservoir Description and Production Enhancement segments. The Reservoir Description segment comprises the characterization of petroleum reservoir rock, fluid, and gas samples to enhance production and improve recovery of oil and gas from its clients' reservoirs. This segment offers laboratory-based analytical and field services to characterize properties of crude oil and petroleum products to the oil and gas industry. It also provides proprietary and joint industry studies. The Production Enhancement segment includes services and products relating to reservoir well completions, perforations, stimulations, and production. This segment offers integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions to improve the effectiveness of enhanced oil recovery projects. The company markets and sells its products through a combination of sales representatives, technical seminars, trade shows, and print advertising, as well as through distributors. Core Laboratories N.V. was founded in 1936 and is based in Amsterdam, the Netherlands.

About SemGroup

SemGroup Corporation provides gathering, transportation, storage, distribution, marketing, and other midstream services for producers, refiners of petroleum products, and other market participants. Its Crude Transportation segment operates crude oil pipelines and truck transportation businesses. It operates a 455-mile crude oil gathering and transportation pipeline system in Kansas and northern Oklahoma; a 75-mile crude oil gathering pipeline system that transports crude oil from production facilities in the DJ Basin to the pipeline owned by White Cliffs Pipeline, L.L.C.; a 527-mile pipeline that transports crude oil from Platteville, Colorado to Cushing, Oklahoma; and 3 pipelines with an aggregate of 106 miles of pipe, as well as crude oil trucking fleet of 215 transport trucks and 210 trailers. The company's Crude Facilities segment operates crude oil storage and terminal businesses. It has 7.6 million barrels of crude oil storage capacity in Cushing, Oklahoma; and a 30-lane crude oil truck unloading facility with 350,000 barrels of storage capacity in Platteville, Colorado. Its Crude Supply and Logistics segment operates a crude oil marketing business. It has approximately 61,800 barrels of crude oil storage capacity in Trenton and Stanley. The company's HFOTCO segment stores, blends, and transports refinery products and refinery feedstocks through pipeline, barge, rail, truck, and ship. It operates a residual fuel oil storage terminal in Gulf Coast of the United States. Its SemGas segment provides natural gas gathering, processing, and marketing services. It operates 660 miles of low pressure and 140 miles of high pressure gathering lines in Oklahoma; and a 53-mile high pressure gathering pipeline located in the STACK play. Its SemCAMS segment owns and operates natural gas processing and gathering facilities with 600 miles of natural gas gathering and transportation pipelines in Alberta. The company was founded in 2000 and is headquartered in Tulsa, Oklahoma.

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