Better Buy: Magellan Midstream Partners vs. NuStar Energy
If you are an income-focused investor, then the master limited partnership space is a good place to examine for investment ideas. But all partnerships are not created equal. This is why you can't simply look at midstream players Magellan Midstream Partners (NYSE: MMP) and NuStar Energy (NYSE: NS) and compare their respective yields of 6.5% and 9%. There's more to understand. Here's what you need to know before you pick between these two midstream players.
Magellan is a $14 billion market cap entity that operates largely in the pipeline space. It has a little bit of storage in the mix, but not too much. Roughly 85% of its business is fee-based. It is largely a domestic player. The partnership has a long history of successfully expanding its business, largely via ground up construction with a few relatively small acquisitions thrown into the mix.
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Source Fool.com
