Memorial Production Partners (NASDAQ: MEMP) and Transportadora De Gas Sa Ord B (NYSE:TGS) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Memorial Production Partners and Transportadora De Gas Sa Ord B, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Memorial Production Partners 3 2 0 0 1.40
Transportadora De Gas Sa Ord B 0 0 0 0 N/A

Memorial Production Partners presently has a consensus target price of $1.40, indicating a potential upside of 1,020.00%. Given Memorial Production Partners’ higher possible upside, analysts plainly believe Memorial Production Partners is more favorable than Transportadora De Gas Sa Ord B.

Volatility and Risk

Memorial Production Partners has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Transportadora De Gas Sa Ord B has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

5.5% of Memorial Production Partners shares are owned by institutional investors. Comparatively, 8.4% of Transportadora De Gas Sa Ord B shares are owned by institutional investors. 1.5% of Memorial Production Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Memorial Production Partners pays an annual dividend of $0.06 per share and has a dividend yield of 48.0%. Transportadora De Gas Sa Ord B does not pay a dividend. Memorial Production Partners pays out -3.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Memorial Production Partners and Transportadora De Gas Sa Ord B’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Memorial Production Partners N/A N/A N/A ($1.75) -0.07
Transportadora De Gas Sa Ord B $550.78 million 5.29 $216.65 million $0.79 23.22

Transportadora De Gas Sa Ord B has higher revenue and earnings than Memorial Production Partners. Memorial Production Partners is trading at a lower price-to-earnings ratio than Transportadora De Gas Sa Ord B, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Memorial Production Partners and Transportadora De Gas Sa Ord B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Memorial Production Partners -395.31% -496.55% -58.07%
Transportadora De Gas Sa Ord B 19.92% 65.69% 20.26%

Summary

Transportadora De Gas Sa Ord B beats Memorial Production Partners on 6 of the 11 factors compared between the two stocks.

About Memorial Production Partners

Memorial Production Partners LP (the Partnership) owns, acquires and exploits oil and natural gas properties in North America. The Partnership is owned by its limited partners and general partner. Its general partner is responsible for managing all of the Partnership’s operations and activities. The Partnership operates in the acquisition, exploitation, development and production of oil and natural gas properties segment. Its business activities are conducted through Memorial Production Operating LLC (OLLC) and its wholly owned subsidiaries. Its assets consist primarily of producing oil and natural gas properties, and are located in East Texas/Louisiana, Rockies, Offshore Southern California, Permian Basin and South Texas. Most of its oil and natural gas properties are located in oil and natural gas reservoirs with geologic characteristics and production profiles and capital requirements.

About Transportadora De Gas Sa Ord B

Transportadora de Gas del Sur S.A. is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (Liquids). The Company operates through four segments: Natural Gas Transportation Services, Liquids Production and Commercialization, Other Services and Telecommunications. The Company’s pipeline system connects gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. It also provides midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation and maintenance services. The Company transports gas through approximately 5,675 miles of pipeline, of which it owns 4,745 miles. It operates the remaining 930 miles, which are owned by the Gas Trusts.

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