Financial Survey: BP Prudhoe Bay Royalty Trust (BPT) versus Andeavor (ANDV)

BP Prudhoe Bay Royalty Trust (NYSE:BPT) and Andeavor (NYSE:ANDV) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for BP Prudhoe Bay Royalty Trust and Andeavor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BP Prudhoe Bay Royalty Trust 0 0 0 0 N/A
Andeavor 0 9 2 0 2.18

Andeavor has a consensus target price of $147.78, suggesting a potential upside of ∞. Given Andeavor’s higher probable upside, analysts plainly believe Andeavor is more favorable than BP Prudhoe Bay Royalty Trust.

Valuation & Earnings

This table compares BP Prudhoe Bay Royalty Trust and Andeavor’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BP Prudhoe Bay Royalty Trust $78.19 million 6.82 $77.03 million N/A N/A
Andeavor N/A N/A N/A N/A N/A

BP Prudhoe Bay Royalty Trust has higher revenue and earnings than Andeavor.

Profitability

This table compares BP Prudhoe Bay Royalty Trust and Andeavor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BP Prudhoe Bay Royalty Trust 98.84% 13,824.51% 9,815.40%
Andeavor N/A N/A N/A

Insider and Institutional Ownership

5.0% of BP Prudhoe Bay Royalty Trust shares are held by institutional investors. Comparatively, 77.7% of Andeavor shares are held by institutional investors. 7.0% of Andeavor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

BP Prudhoe Bay Royalty Trust pays an annual dividend of $4.01 per share and has a dividend yield of 16.1%. Andeavor pays an annual dividend of $2.36 per share. BP Prudhoe Bay Royalty Trust has raised its dividend for 2 consecutive years. BP Prudhoe Bay Royalty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BP Prudhoe Bay Royalty Trust beats Andeavor on 6 of the 10 factors compared between the two stocks.

BP Prudhoe Bay Royalty Trust Company Profile

BP Prudhoe Bay Royalty Trust operates as a grantor trust in the United States. The company holds overriding royalty interest comprising a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope of Alaska. The Prudhoe Bay field extends approximately 12 miles by 27 miles and contains approximately 150,000 gross productive acres. As of December 31, 2017, its estimated proved reserves were 9.070 million barrels of oil and condensate of which 9.047 million barrels are proved developed reserves; and 0.023 million barrels are proved undeveloped reserves. BP Prudhoe Bay Royalty Trust was founded in 1989 and is based in Houston, Texas.

Andeavor Company Profile

Andeavor, through its subsidiaries, operates as an independent petroleum refining, logistics, and marketing company in the United States. The company operates in three segments: Marketing, Logistics, and Refining. The Marketing segment sells gasoline and diesel fuel through retail, branded, and unbranded channels. This segment operates a network of 3,255 retail stations under the ARCO, Shell, Mobil, and SUPERAMERICA brands. The Logistics segment gathers and transports crude oil by pipelines, as well as by trucks. It operates approximately 13 million barrels of crude oil, feedstock, blendstock, refined product, and asphalt storage tanks. The Refining segment buys and refines crude oil and other feed stocks into transportation fuels, such as gasoline and gasoline blend stocks, jet fuel, and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke, calcined coke, and asphalt. It also sells refined products in the bulk market principally to independent unbranded distributors, other refining and marketing companies, utilities, railroads, airlines, and marine and industrial end-users in the western United States. This segment owns and operates 10 petroleum refineries with a combined crude oil capacity of approximately 1,157 thousand barrels per day. The company was formerly known as Tesoro Corporation and changed its name to Andeavor in August 2017. Andeavor was founded in 1968 and is headquartered in San Antonio, Texas.

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