Penntex Midstream Partners (NASDAQ: PTXP) and Columbia Pipeline Partners (NYSE:CPPL) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Profitability

This table compares Penntex Midstream Partners and Columbia Pipeline Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penntex Midstream Partners 34.54% 11.00% 5.81%
Columbia Pipeline Partners 6.40% 0.92% 0.84%

Dividends

Penntex Midstream Partners pays an annual dividend of $1.18 per share and has a dividend yield of 5.9%. Columbia Pipeline Partners pays an annual dividend of $0.79 per share and has a dividend yield of 4.6%. Penntex Midstream Partners pays out 472.0% 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 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.

Analyst Recommendations

This is a summary of recent recommendations for Penntex Midstream Partners and Columbia Pipeline Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penntex Midstream Partners 0 6 1 0 2.14
Columbia Pipeline Partners 0 2 0 0 2.00

Penntex Midstream Partners currently has a consensus price target of $19.17, indicating a potential downside of 4.12%. Columbia Pipeline Partners has a consensus price target of $17.00, indicating a potential downside of 0.87%. Given Columbia Pipeline Partners’ higher possible upside, analysts plainly believe Columbia Pipeline Partners is more favorable than Penntex Midstream Partners.

Institutional & Insider Ownership

55.0% of Penntex Midstream Partners shares are held by institutional investors. Comparatively, 88.2% of Columbia Pipeline Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Penntex Midstream Partners has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Columbia Pipeline Partners has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Penntex Midstream Partners and Columbia Pipeline Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Penntex Midstream Partners N/A N/A N/A $0.25 79.96
Columbia Pipeline Partners N/A N/A N/A $0.70 24.50

Columbia Pipeline Partners is trading at a lower price-to-earnings ratio than Penntex Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Penntex Midstream Partners beats Columbia Pipeline Partners on 7 of the 11 factors compared between the two stocks.

Penntex Midstream Partners Company Profile

PennTex Midstream Partners, LP, focuses on owning, operating, acquiring and developing midstream energy infrastructure assets in North America. The Company owns and operates midstream gathering, processing and transportation assets in northern Louisiana. The Company provides natural gas gathering and processing and residue gas and natural gas liquid (NGL) transportation services to producers focused on the Cotton Valley formation in northern Louisiana. The Company’s assets primarily consisted of natural gas gathering pipeline, two 200 million cubic feet per day (MMcf/d) design-capacity cryogenic natural gas processing plants, and residue gas and NGL transportation pipelines, as of December 31, 2016. In addition to providing midstream services to its primary customer with its existing assets, the Company pursues other opportunities for organic development and growth as producers in its region continue to develop their acreage.

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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