ARKO Petroleum Corp. (APC) vs Star Group, L.P. (SGU)

ARKO Petroleum Corp. and Star Group, L.P. are both Oil & Gas Refining & Marketing companies. ARKO Petroleum Corp. is the larger, with a market value of $714.5M against $424.6M — 1.7× the size. Star Group, L.P. trades at the lower P/E: 6.9× against 15.4×. Star Group, L.P. has the higher net margin (3.96% vs 0.65%) and the lower return on invested capital (16.0% vs 163.7%). Across the 19 metrics below, Star Group, L.P. leads on 13 and ARKO Petroleum Corp. on 6.

Valuation

Metric APC SGU Oil & Gas Refining & Marketing median
P/E 15.40 6.86 11.95
P/S 0.12 0.22 0.36
P/B 2.78 1.08 1.67
Price to free cash flow 9.09 6.74 8.06
EV/EBITDA 0.69 3.29 6.84
EV/Sales 0.17 0.30 0.55
Earnings yield 6.49% 14.59% 6.59%
Free cash flow yield 11.00% 14.84% 11.61%

Profitability

Metric APC SGU Oil & Gas Refining & Marketing median
Gross margin 25.84% 31.79% 14.49%
Operating margin 23.16% 7.14% 7.14%
Net margin 0.65% 3.96% 2.29%
Free cash flow margin 1.33% 3.27% 4.55%
Return on equity 0.00% 20.83% 14.90%
Return on assets 5.55% 7.67% 5.52%
Return on invested capital 163.72% 15.95% 13.76%

Growth

Metric APC SGU Oil & Gas Refining & Marketing median
Revenue growth (TTM) — 7.58% 19.06%
EPS growth (last fiscal year) (18.20%) 102.22% 37.92%
Revenue growth, 5-year CAGR — 3.99% 13.17%
Net income growth, 5-year CAGR — 5.09% 0.00%

Health

Metric APC SGU Oil & Gas Refining & Marketing median
Debt to equity 1.09 0.44 0.48
Current ratio 1.18 0.87 1.32
Net debt to EBITDA 3.47 1.08 2.07

Dividend

Metric APC SGU Oil & Gas Refining & Marketing median
Dividend yield — 6.06% 2.31%
Payout ratio — 0.42 0.35

Size

Metric APC SGU Oil & Gas Refining & Marketing median
Market cap 714.50m 424.58m 4.16b

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