Financial Contrast: Semgroup Corporation (SEMG) vs. Its Peers

Semgroup Corporation (NYSE: SEMG) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it weigh in compared to its peers? We will compare Semgroup Corporation to related companies based on the strength of its valuation, profitability, risk, dividends, analyst recommendations, institutional ownership and earnings.

Institutional & Insider Ownership

90.6% of Semgroup Corporation shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 0.8% of Semgroup Corporation shares are owned by company insiders. Comparatively, 9.2% of shares of all “Oil & Gas Transportation Services” companies are owned 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Semgroup Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semgroup Corporation 0 4 1 0 2.20
Semgroup Corporation Competitors 380 2062 2469 109 2.46

Semgroup Corporation currently has a consensus target price of $32.75, indicating a potential upside of 18.44%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 19.15%. Given Semgroup Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe Semgroup Corporation has less favorable growth aspects than its peers.

Profitability

This table compares Semgroup Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semgroup Corporation 0.24% 3.46% 1.60%
Semgroup Corporation Competitors 17.20% 14.67% 5.61%

Risk & Volatility

Semgroup Corporation has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Semgroup Corporation’s peers have a beta of 1.39, indicating that their average stock price is 39% more volatile than the S&P 500.

Valuation & Earnings

This table compares Semgroup Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Semgroup Corporation $1.66 billion $147.28 million 921.67
Semgroup Corporation Competitors $5.63 billion $1.30 billion 37.75

Semgroup Corporation’s peers have higher revenue and earnings than Semgroup Corporation. Semgroup Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Semgroup Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 6.5%. Semgroup Corporation pays out 6,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.5% and pay out 171.6% of their earnings in the form of a dividend. Semgroup Corporation has raised its dividend for 3 consecutive years.

Summary

Semgroup Corporation peers beat Semgroup Corporation on 11 of the 15 factors compared.

Semgroup Corporation Company Profile

SemGroup Corporation is a provider of gathering, transportation, storage, distribution, marketing and other midstream services to producers, refiners of petroleum products and other market participants located in the Midwest and Rocky Mountain regions of the United States and Canada. The Company’s segments include Crude Transportation, which operates crude oil pipelines and truck transportation businesses in the United States; Crude Facilities, which operates crude oil storage and terminal businesses in the United States; Crude Supply and Logistics, which operates a crude oil marketing business; SemGas, which provides natural gas gathering and processing services; SemCAMS, which operates natural gas processing and gathering facilities in Alberta, Canada; SemLogistics, which owns petroleum products storage facility in the United Kingdom, and SemMexico, which provides liquid asphalt cement products and product application services to the Mexican market, and Corporate and Other.

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