Critical Survey: Macro Enterprises (OTCMKTS:MCESF) & Magellan Midstream Partners (NYSE:MMP)

Macro Enterprises (OTCMKTS:MCESF) and Magellan Midstream Partners (NYSE:MMP) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Analyst Ratings

This is a summary of recent recommendations for Macro Enterprises and Magellan Midstream Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macro Enterprises	0	0	0	0	N/A
Magellan Midstream Partners	3	7	1	0	1.82

Magellan Midstream Partners has a consensus target price of $60.70, suggesting a potential downside of 8.87%. Given Magellan Midstream Partners’ higher probable upside, analysts plainly believe Magellan Midstream Partners is more favorable than Macro Enterprises.

Insider and Institutional Ownership

54.8% of Magellan Midstream Partners shares are owned by institutional investors. 0.3% of Magellan Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Macro Enterprises and Magellan Midstream Partners’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macro Enterprises	N/A	N/A	N/A	N/A	N/A
Magellan Midstream Partners	$3.48 billion	3.86	$1.04 billion	$5.02	13.27

Magellan Midstream Partners has higher revenue and earnings than Macro Enterprises.

Profitability

This table compares Macro Enterprises and Magellan Midstream Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macro Enterprises	N/A	N/A	N/A
Magellan Midstream Partners	29.55%	58.77%	13.07%

Summary

Magellan Midstream Partners beats Macro Enterprises on 8 of the 8 factors compared between the two stocks.

About Macro Enterprises

Macro Enterprises Inc. provides pipeline and facilities construction and maintenance services to the oil and gas industry in western Canada. It offers construction, alteration, repair, and installation of pipeline and facility pressure piping, and structural steel facilities. The company was founded in 1994 and is headquartered in Fort Saint John, Canada. Macro Enterprises Inc. was formerly a subsidiary of Spiecapag Canada Corp.

About Magellan Midstream Partners

Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates refined products pipeline that transports gasoline, diesel and aviation fuel, kerosene, and heating oil to refiners, wholesalers, retailers, traders, railroads, airlines, and regional farm cooperatives; and to end markets, including retail gasoline stations, truck stops, farm cooperatives, railroad fueling depots, military bases, and commercial airports. It also provides pipeline capacity and tank storage services, as well as terminalling, ethanol and biodiesel unloading and loading, additive injection, custom blending, laboratory testing, and data services to shippers. In addition, the company owns and operates crude oil pipelines and storage facilities; and marine terminals located along coastal waterways that provide design, installation, construction, testing, operation, replacement, and management of assets to refiners, marketers, and traders. Magellan Midstream Partners, L.P. was incorporated in 2000 and is headquartered in Tulsa, Oklahoma.