Phillips 66 Partners (NYSE: PSXP) and Enable Midstream Partners, (NYSE:ENBL) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitabiliy, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Phillips 66 Partners and Enable Midstream Partners,’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Phillips 66 Partners $773.00 million 6.51 $449.00 million $2.33 20.00
Enable Midstream Partners, $2.43 billion 2.62 $775.00 million $0.74 19.93

Enable Midstream Partners, has higher revenue and earnings than Phillips 66 Partners. Enable Midstream Partners, is trading at a lower price-to-earnings ratio than Phillips 66 Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Phillips 66 Partners and Enable Midstream Partners,, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phillips 66 Partners 1 2 8 0 2.64
Enable Midstream Partners, 1 5 3 0 2.22

Phillips 66 Partners currently has a consensus target price of $59.25, suggesting a potential upside of 27.12%. Enable Midstream Partners, has a consensus target price of $16.75, suggesting a potential upside of 13.56%. Given Phillips 66 Partners’ stronger consensus rating and higher probable upside, research analysts clearly believe Phillips 66 Partners is more favorable than Enable Midstream Partners,.

Dividends

Phillips 66 Partners pays an annual dividend of $2.34 per share and has a dividend yield of 5.0%. Enable Midstream Partners, pays an annual dividend of $1.27 per share and has a dividend yield of 8.6%. Phillips 66 Partners pays out 100.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners, pays out 171.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Phillips 66 Partners has raised its dividend for 3 consecutive years and Enable Midstream Partners, has raised its dividend for 2 consecutive years.

Profitability

This table compares Phillips 66 Partners and Enable Midstream Partners,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Phillips 66 Partners 46.38% 22.31% 9.95%
Enable Midstream Partners, 13.71% 4.50% 2.97%

Insider and Institutional Ownership

42.4% of Phillips 66 Partners shares are owned by institutional investors. Comparatively, 18.2% of Enable Midstream Partners, shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Phillips 66 Partners has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Enable Midstream Partners, has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.

Summary

Phillips 66 Partners beats Enable Midstream Partners, on 12 of the 16 factors compared between the two stocks.

About Phillips 66 Partners

Phillips 66 Partners LP (Phillips 66) owns, operates, develops and acquires fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines, terminals and other transportation and midstream assets. The Company’s assets consist of systems, such as Clifton Ridge Crude System, Eagle Ford Gathering System, Ponca Crude System, Billings Crude System, Borger Crude System, Sweeny to Pasadena Products System, Hartford Connector Products System, Gold Line Products System, Cross-Channel Connector Products System, Ponca Products System, Billings Products System, Bayway Products System, Standish Pipeline, Borger Products System, River Parish NGL System, Medford Spheres, Bayway Rail Rack, Ferndale Rail Rack, Sand Hills/Southern Hills Joint Ventures, Explorer Pipeline Joint Venture, Bakken Joint Ventures, Bayou Bridge Pipeline Joint Venture, STACK Pipeline Joint Venture, and Sweeny Fractionator and Clemens Caverns.

About Enable Midstream Partners,

Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states.

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