Rice Midstream Partners (NYSE: RMP) and Navigator Holdings (NYSE:NVGS) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares Rice Midstream Partners and Navigator Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rice Midstream Partners 58.22% 12.71% 10.92%
Navigator Holdings 6.44% 2.28% 1.25%

Analyst Ratings

This is a summary of recent recommendations and price targets for Rice Midstream Partners and Navigator Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rice Midstream Partners 0 12 3 0 2.20
Navigator Holdings 1 0 5 0 2.67

Rice Midstream Partners presently has a consensus price target of $22.25, suggesting a potential upside of 5.10%. Navigator Holdings has a consensus price target of $14.00, suggesting a potential upside of 26.70%. Given Navigator Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Navigator Holdings is more favorable than Rice Midstream Partners.

Valuation & Earnings

This table compares Rice Midstream Partners and Navigator Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rice Midstream Partners $235.66 million 9.19 $180.22 million $1.54 13.75
Navigator Holdings $296.90 million 2.07 $119.59 million $0.35 31.57

Rice Midstream Partners has higher revenue, but lower earnings than Navigator Holdings. Rice Midstream Partners is trading at a lower price-to-earnings ratio than Navigator Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Rice Midstream Partners has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Navigator Holdings has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Dividends

Rice Midstream Partners pays an annual dividend of $1.08 per share and has a dividend yield of 5.1%. Navigator Holdings does not pay a dividend. Rice Midstream Partners pays out 70.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

67.0% of Navigator Holdings shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Rice Midstream Partners beats Navigator Holdings on 8 of the 15 factors compared between the two stocks.

Rice Midstream Partners Company Profile

Rice Midstream Partners LP owns, operates, develops and acquires midstream assets in the Appalachian Basin. The Company’s segments are gathering and compression, and water services. The gathering and compression segment provides natural gas gathering and compression services for Rice Energy Inc. (Rice Energy) and third parties in the Appalachian Basin. The water services segment provides water services to support well completion activities, and to collect and recycle or dispose of flowback and produced water for Rice Energy and third parties in the Appalachian Basin. Its gas gathering and compression assets are located within the dry gas core of the Marcellus Shale and, consists of approximately 3.3 million dekatherms per day (MMDth/d) high-pressure dry gas gathering system and associated compression in Washington County, Pennsylvania, and an approximately 840 thousand dekatherms per day (MDth/d) high-pressure dry gas gathering system in Greene County, Pennsylvania.

Navigator Holdings Company Profile

Navigator Holdings Ltd. is an owner and operator of a fleet of handysize liquefied gas carriers. The Company provides international and regional seaborne transportation services of liquefied petroleum gas (LPG), petrochemical gases and ammonia. As of December 31, 2016, it had 33 semi- or fully-refrigerated handysize liquefied gas carriers. Its handysize liquefied gas carriers are liquefied gas carriers with capabilities between 15,000 and 24,999 cubic meter (cbm). Its handysize liquefied gas carriers can accommodate medium- and long-haul routes. In addition, it had four midsize 37,300 cbm ethylene-capable semi-refrigerated liquefied gas carriers as of December 31, 2016. Its midsize ethylene-capable semi-refrigerated gas carriers enable long-haul transportation of ethane/ethylene. As of December 31, 2016, it also had one 38,000 cbm fully refrigerated gas carrier. The Company carries LPG for international energy companies, state-owned utilities and commodities traders.

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