Analyzing EQT Midstream Partners, (EQM) and Columbia Pipeline Partners (CPPL)
EQT Midstream Partners, (NYSE: EQM) and Columbia Pipeline Partners (NYSE:CPPL) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Valuation and Earnings
This table compares EQT Midstream Partners, and Columbia Pipeline Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EQT Midstream Partners,||$774.18 million||7.98||$623.10 million||$5.17||14.82|
|Columbia Pipeline Partners||N/A||N/A||N/A||$0.70||24.50|
EQT Midstream Partners, has higher revenue and earnings than Columbia Pipeline Partners. EQT Midstream Partners, is trading at a lower price-to-earnings ratio than Columbia Pipeline Partners, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
EQT Midstream Partners, has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Columbia Pipeline Partners has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
This table compares EQT Midstream Partners, and Columbia Pipeline Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EQT Midstream Partners,||66.99%||25.61%||16.75%|
|Columbia Pipeline Partners||6.40%||0.92%||0.84%|
This is a breakdown of current ratings for EQT Midstream Partners, and Columbia Pipeline Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EQT Midstream Partners,||0||2||5||0||2.71|
|Columbia Pipeline Partners||0||2||0||0||2.00|
EQT Midstream Partners, currently has a consensus target price of $91.50, indicating a potential upside of 19.42%. Columbia Pipeline Partners has a consensus target price of $17.00, indicating a potential downside of 0.87%. Given EQT Midstream Partners,’s stronger consensus rating and higher possible upside, equities analysts clearly believe EQT Midstream Partners, is more favorable than Columbia Pipeline Partners.
Insider and Institutional Ownership
73.5% of EQT Midstream Partners, shares are owned by institutional investors. Comparatively, 88.2% of Columbia Pipeline Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
EQT Midstream Partners, pays an annual dividend of $3.74 per share and has a dividend yield of 4.9%. Columbia Pipeline Partners pays an annual dividend of $0.79 per share and has a dividend yield of 4.6%. EQT Midstream Partners, pays out 72.3% of its earnings in the form of a dividend. Columbia Pipeline Partners pays out 112.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Columbia Pipeline Partners has increased its dividend for 4 consecutive years. EQT Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.
EQT Midstream Partners, beats Columbia Pipeline Partners on 11 of the 13 factors compared between the two stocks.
EQT Midstream Partners, Company Profile
EQT Midstream Partners, LP (EQM) owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company’s segments include Gathering and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. Transmission includes EQM’s FERC-regulated interstate pipeline and storage business. The Company’s operations are primarily focused in southwestern Pennsylvania and northern West Virginia. As of December 31, 2016, the Company provided midstream services to EQT Corporation (EQT) and a range of third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two assets: the gathering system, which delivered natural gas from wells and other receipt points to transmission pipelines, and the transmission and storage system, which served as a header system transmission pipeline.
Columbia Pipeline Partners Company Profile
Columbia Pipeline Partners LP (the Partnership) is a limited partnership company operating a portfolio of pipelines, storage and related midstream assets. It is engaged in interstate gas transportation and storage services for local distribution companies (LDCs), marketers and industrial and commercial customers located in northeastern, mid-Atlantic, Midwestern and southern states, and the District of Columbia along with unregulated businesses that include midstream services, including gathering, treating, conditioning, processing, compression and liquids handling, and development of mineral rights positions. The Company owns, operates and develops a portfolio of pipelines, storage and related midstream assets. The Company has a general partner interest in CPG OpCo LP (Columbia OpCo), as well as a limited partner interest in Columbia OpCo, a limited partnership that owns the natural gas transmission and storage assets of Columbia Energy Group (CEG).
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