Head-To-Head Review: EnLink Midstream Partners, (ENLK) versus Pembina Pipeline Corp. (NYSE:PBA)
EnLink Midstream Partners, (NYSE: ENLK) and Pembina Pipeline Corp. (NYSE:PBA) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitabiliy, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This is a summary of current recommendations and price targets for EnLink Midstream Partners, and Pembina Pipeline Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EnLink Midstream Partners,||0||4||5||0||2.56|
|Pembina Pipeline Corp.||0||0||9||0||3.00|
EnLink Midstream Partners, currently has a consensus target price of $19.33, suggesting a potential upside of 20.23%. Pembina Pipeline Corp. has a consensus target price of $45.00, suggesting a potential upside of 35.01%. Given Pembina Pipeline Corp.’s stronger consensus rating and higher possible upside, analysts plainly believe Pembina Pipeline Corp. is more favorable than EnLink Midstream Partners,.
This table compares EnLink Midstream Partners, and Pembina Pipeline Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EnLink Midstream Partners,||0.67%||1.13%||0.47%|
|Pembina Pipeline Corp.||12.12%||8.59%||3.88%|
EnLink Midstream Partners, pays an annual dividend of $1.56 per share and has a dividend yield of 9.7%. Pembina Pipeline Corp. pays an annual dividend of $1.57 per share and has a dividend yield of 4.7%. EnLink Midstream Partners, pays out -503.2% of its earnings in the form of a dividend. Pembina Pipeline Corp. pays out 161.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pembina Pipeline Corp. has raised its dividend for 2 consecutive years. EnLink Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
EnLink Midstream Partners, has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Pembina Pipeline Corp. has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Earnings & Valuation
This table compares EnLink Midstream Partners, and Pembina Pipeline Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EnLink Midstream Partners,||$4.93 billion||1.13||$745.90 million||($0.31)||-51.87|
|Pembina Pipeline Corp.||$3.87 billion||3.47||$1.02 billion||$0.97||34.36|
Pembina Pipeline Corp. has higher revenue, but lower earnings than EnLink Midstream Partners,. EnLink Midstream Partners, is trading at a lower price-to-earnings ratio than Pembina Pipeline Corp., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
42.5% of EnLink Midstream Partners, shares are held by institutional investors. Comparatively, 46.7% of Pembina Pipeline Corp. shares are held by institutional investors. 0.2% of EnLink Midstream Partners, shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Pembina Pipeline Corp. beats EnLink Midstream Partners, on 11 of the 16 factors compared between the two stocks.
About EnLink Midstream Partners,
EnLink Midstream Partners, LP is a midstream company. The Company’s business activities are conducted through its subsidiary, EnLink Midstream Operating, LP (the Operating Partnership) and the subsidiaries of the Operating Partnership. The Company operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Company focuses on providing midstream energy services, including gathering, processing, transmission, fractionation, storage, condensate stabilization, brine services and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate. As of December 31, 2016, its midstream energy asset network included approximately 11,000 miles of pipelines, 20 natural gas processing plants, seven fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain private midstream companies.
About Pembina Pipeline Corp.
Pembina Pipeline Corporation is an energy transportation and service provider. The Company operates through four segments. The Conventional Pipelines segment consists of the tariff-based operations of pipelines and related facilities to deliver crude oil, condensate and natural gas liquids (NGL) in Alberta, British Columbia, Saskatchewan, and North Dakota, United States. The Oil Sands & Heavy Oil segment consists of the Syncrude, Horizon, Nipisi and Mitsue Pipelines, and the Cheecham Lateral. These pipelines and related facilities deliver synthetic crude oil produced from oil sands under long-term cost-of-service arrangements. The Gas Services segment consists of natural gas gathering and processing facilities. The Midstream segment consists of the Company’s interests in extraction and fractionation facilities, terminalling and storage hub services under a mixture of short, medium and long-term contractual arrangements.
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