Cone Midstream Partners (NYSE: CNNX) and Energy Transfer Equity, L.P. (NYSE:ETE) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Profitability

This table compares Cone Midstream Partners and Energy Transfer Equity, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cone Midstream Partners 45.95% 14.15% 11.74%
Energy Transfer Equity, L.P. 2.18% 3.79% 1.14%

Insider & Institutional Ownership

37.0% of Cone Midstream Partners shares are owned by institutional investors. Comparatively, 48.4% of Energy Transfer Equity, L.P. shares are owned by institutional investors. 3.3% of Energy Transfer Equity, L.P. shares are owned by insiders. 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.

Valuation & Earnings

This table compares Cone Midstream Partners and Energy Transfer Equity, L.P.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cone Midstream Partners $234.05 million 4.30 $150.90 million $1.67 9.49
Energy Transfer Equity, L.P. $42.15 billion 0.44 $5.53 billion $0.79 21.85

Energy Transfer Equity, L.P. has higher revenue and earnings than Cone Midstream Partners. Cone Midstream Partners is trading at a lower price-to-earnings ratio than Energy Transfer Equity, L.P., indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cone Midstream Partners has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Energy Transfer Equity, L.P. has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Dividends

Cone Midstream Partners pays an annual dividend of $1.17 per share and has a dividend yield of 7.4%. Energy Transfer Equity, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 6.6%. Cone Midstream Partners pays out 70.1% of its earnings in the form of a dividend. Energy Transfer Equity, L.P. pays out 144.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cone Midstream Partners has raised its dividend for 4 consecutive years. Cone Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cone Midstream Partners and Energy Transfer Equity, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cone Midstream Partners 0 4 4 0 2.50
Energy Transfer Equity, L.P. 0 3 11 0 2.79

Cone Midstream Partners presently has a consensus target price of $23.29, indicating a potential upside of 47.01%. Energy Transfer Equity, L.P. has a consensus target price of $21.18, indicating a potential upside of 22.72%. Given Cone Midstream Partners’ higher probable upside, equities analysts plainly believe Cone Midstream Partners is more favorable than Energy Transfer Equity, L.P..

Summary

Cone Midstream Partners beats Energy Transfer Equity, L.P. on 9 of the 17 factors compared between the two stocks.

Cone Midstream Partners Company Profile

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.

Energy Transfer Equity, L.P. Company Profile

Energy Transfer Equity, L.P. (ETE) owns equity interests in Energy Transfer Partners, L.P. (ETP) and Sunoco LP, which are engaged in diversified energy-related services. The Company’s segments include Investment in ETP, including the consolidated operations of ETP; Investment in Sunoco LP, including the consolidated operations of Sunoco LP; Investment in Lake Charles LNG, including the operations of Lake Charles LNG, and Corporate and Other. Its Investment in ETP segment includes the ETP’s operations, which include intrastate transportation and storage operations; interstate transportation and storage operations; midstream operations; liquids transportation and services operations; ETP’s Investment in Sunoco Logistics; Retail Marketing operations, and ETP’s other operations and Investments. The Investment in Sunoco LP segment includes wholesale operations and retail operations. Lake Charles LNG owns a LNG import terminal and regasification facility located on Louisiana’s Gulf Coast.

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