Better Buy: Ferrellgas Partners, L.P. vs. AmeriGas Partners, L.P.

Ferrellgas Partners, L.P. (NYSE: FGP) and AmeriGas Partners, L.P. (NYSE: APU) are two of the largest propane distributors in the United States. A string of warm winters, however, has made delivery of this vital fuel a tough business -- which helps explain why these partnerships offer yields of more than 8%. Since the weather is transitory and propane isn't going away, though, it's time for income investors to get to know these propane players. Of the pair, most should favor AmeriGas. Here's why:

Ferrellgas has propane delivery operations that span almost the entire country. It's important to note that it doesn't get paid for the propane it delivers; it gets paid for delivering the fuel. That's a pretty steady business most of the time.

However, heating represents a significant portion of propane demand, and a string of warm winters has put a crimp in Ferrellgas' propane business.

Source: Fool.com