Contrasting Hess Midstream Partners (HESM) & Golar LNG Limited (GLNG)
Hess Midstream Partners (NASDAQ: HESM) and Golar LNG Limited (NASDAQ:GLNG) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
This is a summary of current ratings for Hess Midstream Partners and Golar LNG Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hess Midstream Partners||0||1||4||0||2.80|
|Golar LNG Limited||0||2||9||0||2.82|
Hess Midstream Partners currently has a consensus price target of $28.80, indicating a potential upside of 49.92%. Golar LNG Limited has a consensus price target of $35.17, indicating a potential upside of 73.58%. Given Golar LNG Limited’s stronger consensus rating and higher probable upside, analysts clearly believe Golar LNG Limited is more favorable than Hess Midstream Partners.
This table compares Hess Midstream Partners and Golar LNG Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hess Midstream Partners||49.24%||N/A||N/A|
|Golar LNG Limited||-228.55%||-7.51%||-3.15%|
Golar LNG Limited pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Hess Midstream Partners does not pay a dividend.
Valuation and Earnings
This table compares Hess Midstream Partners and Golar LNG Limited’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hess Midstream Partners||$540.50 million||1.94||$357.80 million||N/A||N/A|
|Golar LNG Limited||$88.81 million||22.36||-$60.92 million||N/A||N/A|
Hess Midstream Partners has higher revenue and earnings than Golar LNG Limited.
Institutional and Insider Ownership
89.0% of Golar LNG Limited shares are held by institutional investors. 0.0% of Golar LNG Limited shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Golar LNG Limited beats Hess Midstream Partners on 7 of the 12 factors compared between the two stocks.
Hess Midstream Partners Company Profile
Hess Midstream Partners LP is a fee-based, traditional master limited partnership formed to own, operate, develop and acquire a set of midstream assets to provide services to Hess and third-party crude oil and natural gas producers. The Company’s assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota (collectively referred as the Bakken). It operates its business through three segments: gathering; processing and storage; and terminaling and export. The Company’s gathering business consisted of its 20% controlling economic interest in Gathering Opco, which owns North Dakota natural gas, natural gas liquids and crude oil gathering systems. The Company’s processing and storage business consisted of its 20% controlling economic interest in the Tioga Gas Plant and its 100% interest in the Mentor Storage Terminal. The Company’s terminaling and export business consisted of its 20% controlling economic interest in Logistics Opco.
Golar LNG Limited Company Profile
Golar LNG Limited is a midstream liquefied natural gas (LNG) company engaged primarily in the transportation, regasification, liquefaction and trading of LNG. The Company is engaged in the acquisition, ownership, operation and chartering of LNG carriers and Floating Storage Regasification Unit (FSRUs) through its subsidiaries and affiliates, and the development of LNG projects, such as floating LNGs (FLNGs). The Company’s segments include Vessel operations, LNG trading and FLNG. Under the Vessel operations segment, the Company operates and charters out LNG carriers and FSRUs on fixed terms to customers. Through the LNG trading segment, the Company provides physical and financial risk management in LNG and gas markets for customers around the world. The FLNG segment includes the costs associated with the conversion of its LNG carrier, the Hilli, to a FLNG. The Company, along with its affiliate, Golar LNG Partners LP, has a combined fleet of approximately 30 vessels.
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