Head-To-Head Analysis: Golar LNG Partners (NASDAQ:GMLP) vs. Rice Midstream Partners (RMP)
Golar LNG Partners (NASDAQ: GMLP) and Rice Midstream Partners (NYSE:RMP) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitabiliy, valuation and analyst recommendations.
This is a breakdown of recent ratings and recommmendations for Golar LNG Partners and Rice Midstream Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golar LNG Partners||0||3||1||0||2.25|
|Rice Midstream Partners||0||11||2||0||2.15|
Golar LNG Partners currently has a consensus price target of $23.25, indicating a potential upside of 12.81%. Rice Midstream Partners has a consensus price target of $23.63, indicating a potential upside of 17.36%. Given Rice Midstream Partners’ higher probable upside, analysts clearly believe Rice Midstream Partners is more favorable than Golar LNG Partners.
Earnings & Valuation
This table compares Golar LNG Partners and Rice Midstream Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golar LNG Partners||$441.92 million||3.30||$366.28 million||$2.81||7.33|
|Rice Midstream Partners||$209.83 million||9.81||$161.02 million||$1.50||13.42|
Golar LNG Partners has higher revenue and earnings than Rice Midstream Partners. Golar LNG Partners is trading at a lower price-to-earnings ratio than Rice Midstream Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Golar LNG Partners and Rice Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golar LNG Partners||40.50%||28.97%||7.83%|
|Rice Midstream Partners||58.46%||12.79%||11.35%|
Institutional and Insider Ownership
77.4% of Golar LNG Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Golar LNG Partners pays an annual dividend of $2.31 per share and has a dividend yield of 11.2%. Rice Midstream Partners pays an annual dividend of $1.04 per share and has a dividend yield of 5.2%. Golar LNG Partners pays out 82.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rice Midstream Partners pays out 69.3% of its earnings in the form of a dividend.
Risk and Volatility
Golar LNG Partners has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Rice Midstream Partners has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
Rice Midstream Partners beats Golar LNG Partners on 8 of the 15 factors compared between the two stocks.
About Golar LNG Partners
Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term time charters. The Company operates through the LNG market segment. The Company’s fleet consists of approximately six FSRUs and over four LNG carriers. The Company’s FSRU vessels include Golar Spirit, Golar Winter, Golar Freeze, NR Satu, Golar Igloo and Golar Eskimo. Its FSRU vessels have a total capacity of approximately 846,000 cubic meters. The Company’s LNG carriers include Golar Mazo, Methane Princess, Golar Grand and Golar Maria. Its LNG carriers have a total capacity of over 564,400 cubic meters.
About Rice Midstream Partners
Rice Midstream Partners LP owns, operates, develops and acquires midstream assets in the Appalachian Basin. The Company’s segments are gathering and compression, and water services. The gathering and compression segment provides natural gas gathering and compression services for Rice Energy Inc. (Rice Energy) and third parties in the Appalachian Basin. The water services segment provides water services to support well completion activities, and to collect and recycle or dispose of flowback and produced water for Rice Energy and third parties in the Appalachian Basin. Its gas gathering and compression assets are located within the dry gas core of the Marcellus Shale and, consists of approximately 3.3 million dekatherms per day (MMDth/d) high-pressure dry gas gathering system and associated compression in Washington County, Pennsylvania, and an approximately 840 thousand dekatherms per day (MDth/d) high-pressure dry gas gathering system in Greene County, Pennsylvania.
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