Head-To-Head Analysis: EnLink Midstream (ENLC) versus Valero Energy Partners (VLP)
EnLink Midstream (NYSE: ENLC) and Valero Energy Partners (NYSE:VLP) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
34.8% of EnLink Midstream shares are held by institutional investors. Comparatively, 29.9% of Valero Energy Partners shares are held by institutional investors. 1.2% of EnLink Midstream shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares EnLink Midstream and Valero Energy Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EnLink Midstream||$4.92 billion||0.65||$751.90 million||N/A||N/A|
|Valero Energy Partners||$412.55 million||7.15||$298.24 million||$2.95||14.66|
EnLink Midstream has higher revenue and earnings than Valero Energy Partners.
This is a summary of recent ratings and target prices for EnLink Midstream and Valero Energy Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Valero Energy Partners||0||1||6||0||2.86|
EnLink Midstream currently has a consensus target price of $18.33, indicating a potential upside of 4.17%. Valero Energy Partners has a consensus target price of $53.43, indicating a potential upside of 23.53%. Given Valero Energy Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Valero Energy Partners is more favorable than EnLink Midstream.
Risk & Volatility
EnLink Midstream has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500. Comparatively, Valero Energy Partners has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
EnLink Midstream pays an annual dividend of $1.02 per share and has a dividend yield of 5.8%. Valero Energy Partners pays an annual dividend of $1.82 per share and has a dividend yield of 4.2%. Valero Energy Partners pays out 61.7% of its earnings in the form of a dividend. EnLink Midstream has increased its dividend for 2 consecutive years and Valero Energy Partners has increased its dividend for 2 consecutive years.
This table compares EnLink Midstream and Valero Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Valero Energy Partners||55.29%||266.53%||22.74%|
EnLink Midstream beats Valero Energy Partners on 8 of the 15 factors compared between the two stocks.
EnLink Midstream Company Profile
EnLink Midstream, LLC is an integrated midstream company. The Company’s assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership’s segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.
Valero Energy Partners Company Profile
Valero Energy Partners LP owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. The Company’s assets include crude oil and refined petroleum products pipelines, terminals, and other logistics assets in the United States Gulf Coast and the United States Mid-Continent regions that are integral to the operations of the ten of Valero Energy Corporation (Valero) refineries. It provides assets and services, such as Port Arthur logistics system, McKee logistics system, Memphis logistics system, Three Rivers logistics system, Ardmore logistics system, Houston logistics system, St. Charles logistics system, Corpus Christi logistics system and Meraux logistics system. Port Arthur logistics system includes its Lucas crude system and its Port Arthur products system. McKee logistics system is a crude oil and refined petroleum products pipeline and terminal system supporting Valero’s McKee Refinery.
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