TC Pipelines, (NASDAQ: TCLP) and Cone Midstream Partners (NYSE:CNNX) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Insider & Institutional Ownership

40.8% of Cone Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for TC Pipelines, and Cone Midstream Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TC Pipelines, 0 0 0 0 N/A
Cone Midstream Partners 0 5 6 0 2.55

Cone Midstream Partners has a consensus price target of $22.89, indicating a potential upside of 32.84%. Given Cone Midstream Partners’ higher possible upside, analysts clearly believe Cone Midstream Partners is more favorable than TC Pipelines,.

Earnings and Valuation

This table compares TC Pipelines, and Cone Midstream Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TC Pipelines, N/A N/A N/A N/A N/A
Cone Midstream Partners $234.05 million 4.68 $150.90 million $1.67 10.32

Cone Midstream Partners has higher revenue and earnings than TC Pipelines,.

Profitability

This table compares TC Pipelines, and Cone Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TC Pipelines, 84.27% 23.48% 9.51%
Cone Midstream Partners 45.95% 14.15% 11.74%

Dividends

Cone Midstream Partners pays an annual dividend of $1.17 per share and has a dividend yield of 6.8%. TC Pipelines, does not pay a dividend. Cone Midstream Partners pays out 70.1% of its earnings in the form of a dividend.

Summary

Cone Midstream Partners beats TC Pipelines, on 6 of the 9 factors compared between the two stocks.

About TC Pipelines,

TC PipeLines, LP is a master limited partnership. The Company acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company’s pipeline systems transport natural gas in the United States. As of December 31, 2016, the Company had four pipelines and equity ownership interests in three natural gas interstate pipeline systems that are collectively designed to transport approximately 9.1 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern and Eastern United States. The Company’s pipeline systems include Gas Transmission Northwest LLC (GTN), Bison Pipeline LLC (Bison), North Baja Pipeline, LLC (North Baja), Tuscarora Gas Transmission Company (Tuscarora), Northern Border Pipeline Company (Northern Border), Portland Natural Gas Transmission System (PNGTS), and Great Lakes Gas Transmission Limited Partnership (Great Lakes).

About Cone Midstream Partners

CONE Midstream Partners LP is a master limited partnership formed by CONSOL Energy Inc. (CONSOL) and Noble Energy, Inc. (Noble Energy). The Company owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service CONSOL’s and Noble Energy’s production in the Marcellus Shale in Pennsylvania and West Virginia. Its assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. It operates through three segments: Anchor Systems, Growth Systems and Additional Systems. Its Anchor Systems include developed midstream systems, including its three midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. Its Growth Systems are located in the dry gas regions of its dedicated acreage. Its Additional Systems include various gathering systems located in the wet gas regions of its dedicated acreage.

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