EQT GP Holdings, (NYSE: EQGP) and RSP Permian (NYSE:RSPP) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

10.2% of EQT GP Holdings, shares are owned by institutional investors. Comparatively, 86.6% of RSP Permian shares are owned by institutional investors. 15.0% of RSP Permian shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

EQT GP Holdings, pays an annual dividend of $0.84 per share and has a dividend yield of 3.1%. RSP Permian does not pay a dividend. EQT GP Holdings, pays out 94.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares EQT GP Holdings, and RSP Permian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EQT GP Holdings, 30.65% 11.72% 7.66%
RSP Permian 12.71% 1.86% 1.29%

Valuation & Earnings

This table compares EQT GP Holdings, and RSP Permian’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EQT GP Holdings, $774.18 million 9.20 $620.07 million $0.89 30.08
RSP Permian $569.59 million 8.97 $412.26 million $0.48 67.15

EQT GP Holdings, has higher revenue and earnings than RSP Permian. EQT GP Holdings, is trading at a lower price-to-earnings ratio than RSP Permian, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for EQT GP Holdings, and RSP Permian, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT GP Holdings, 0 3 4 0 2.57
RSP Permian 0 1 21 1 3.00

EQT GP Holdings, currently has a consensus price target of $32.86, indicating a potential upside of 22.74%. RSP Permian has a consensus price target of $46.95, indicating a potential upside of 45.69%. Given RSP Permian’s stronger consensus rating and higher possible upside, analysts clearly believe RSP Permian is more favorable than EQT GP Holdings,.

Volatility & Risk

EQT GP Holdings, has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, RSP Permian has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500.

Summary

RSP Permian beats EQT GP Holdings, on 9 of the 17 factors compared between the two stocks.

EQT GP Holdings, Company Profile

EQT GP Holdings, LP (EQGP) is a limited partnership company and subsidiary of EQT Gathering Holdings, LLC (EQT Gathering Holdings). The Company was formed to own EQT Corporation’s (EQT’s) partnership interests in EQT Midstream Partners, LP (EQM), a limited partnership formed by EQT to own, operate, acquire and develop midstream assets in the Appalachian Basin. Its 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. The Transmission segment includes EQM’s FERC-regulated interstate pipeline and storage business. EQGP has no independent operations. It has partnership interests in EQM. As of December 31, 2016, EQM provided midstream services to EQT and various third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two primary assets: the gathering system, and the transmission and storage system.

RSP Permian Company Profile

RSP Permian, Inc. is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, and the Delaware Basin, both sub-basins of the Permian Basin. The Midland Basin properties are primarily in the adjacent counties of Midland, Martin, Andrews, Ector, Glasscock and Dawson. The Delaware Basin properties are in Loving and Winkler counties. The Company has drilled Lower Spraberry horizontal well and a Middle Spraberry horizontal well in the Permian Basin. In addition, it has also drilled a Wolfcamp B horizontal well in the North Midland Basin.

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