Enbridge (NYSE: ENB) and Crestwood Midstream Partners (NYSE:CMLP) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitabiliy and earnings.

Institutional & Insider Ownership

63.0% of Enbridge shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Enbridge pays an annual dividend of $1.79 per share and has a dividend yield of 4.3%. Crestwood Midstream Partners does not pay a dividend. Enbridge pays out 208.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Enbridge and Crestwood Midstream Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enbridge $28.95 billion 2.37 $4.94 billion $0.86 48.72
Crestwood Midstream Partners N/A N/A N/A N/A N/A

Enbridge has higher revenue and earnings than Crestwood Midstream Partners.

Profitability

This table compares Enbridge and Crestwood Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enbridge 4.06% 8.23% 2.04%
Crestwood Midstream Partners -2.34% -7.50% -1.76%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Enbridge and Crestwood Midstream Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enbridge 0 6 8 0 2.57
Crestwood Midstream Partners 0 0 0 0 N/A

Enbridge currently has a consensus price target of $54.86, suggesting a potential upside of 30.92%. Given Enbridge’s higher probable upside, research analysts plainly believe Enbridge is more favorable than Crestwood Midstream Partners.

Summary

Enbridge beats Crestwood Midstream Partners on 9 of the 10 factors compared between the two stocks.

About Enbridge

Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.

About Crestwood Midstream Partners

Crestwood Midstream Partners LP (Crestwood) develops, acquires, owns and operates primarily fee-based assets and operations within the energy midstream sector. The Company has three reporting segments: gathering and processing (G&P), providing natural gas gathering, processing, treating and compression services to producers in multiple unconventional shale plays; storage and transportation, which owns and operates natural gas storage facilities, and NGL and crude services, including crude oil rail terminals, the Arrow gathering system, its fleet of over-the-road crude oil and produced water transportation assets, an NGL storage facility, and US Salt, LLC. It provides infrastructure solutions across the value chain to service liquids-rich and crude oil shale plays across the United States. It owns and operates a portfolio of crude oil and natural gas gathering, processing, storage and transportation assets that connect fundamental energy supply with energy demand across North America.

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