Star Group, L.P. (SGU) vs World Kinect Corporation (WKC)

Star Group, L.P. and World Kinect Corporation are both Oil & Gas Refining & Marketing companies. World Kinect Corporation is the larger, with a market value of $1.8B against $415.1M — 4.4× the size. World Kinect Corporation has negative trailing earnings, so its P/E is not meaningful; Star Group, L.P. trades at 6.9×. World Kinect Corporation grew revenue faster over the last twelve months: 7.61% against 7.58%. Star Group, L.P. has the higher net margin (3.96% vs −0.43%) and the higher return on invested capital (16.0% vs −2.02%). Both pay a dividend; Star Group, L.P. yields more (5.66% vs 2.42%). Across the 22 metrics below, Star Group, L.P. leads on 17 and World Kinect Corporation on 5.

Valuation

Metric SGU WKC Oil & Gas Refining & Marketing median
P/E 6.86 n/m 15.04
P/S 0.22 0.04 0.41
P/B 1.08 1.45 1.87
Price to free cash flow 6.75 93.89 8.78
EV/EBITDA 3.29 8.97 7.94
EV/Sales 0.30 0.06 0.59
Earnings yield 14.58% (8.97%) 6.15%
Free cash flow yield 14.83% 1.07% 10.47%

Profitability

Metric SGU WKC Oil & Gas Refining & Marketing median
Gross margin 31.79% 2.69% 12.22%
Operating margin 7.14% (0.15%) 5.35%
Net margin 3.96% (0.43%) 2.08%
Free cash flow margin 3.27% 0.05% 4.25%
Return on equity 20.83% (12.49%) 11.39%
Return on assets 7.67% (2.83%) 5.22%
Return on invested capital 15.95% (2.02%) 11.54%

Growth

Metric SGU WKC Oil & Gas Refining & Marketing median
Revenue growth (TTM) 7.58% 7.61% 13.37%
EPS growth (last fiscal year) 102.22% (1,072.57%) —
Revenue growth, 5-year CAGR 3.99% 12.64% 12.77%
Net income growth, 5-year CAGR 5.09% 0.00% 0.00%

Health

Metric SGU WKC Oil & Gas Refining & Marketing median
Debt to equity 0.44 0.59 0.44
Current ratio 0.87 1.06 1.32
Net debt to EBITDA 1.08 1.81 2.07

Dividend

Metric SGU WKC Oil & Gas Refining & Marketing median
Dividend yield 5.66% 2.42% 3.64%
Payout ratio — 0.29 0.14

Size

Metric SGU WKC Oil & Gas Refining & Marketing median
Market cap 415.06m 1.84b 4.12b

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