Reviewing Ngl Energy Partners Lp (NGL) & Western Gas Equity Partners, (WGP)
Ngl Energy Partners Lp (NYSE: NGL) and Western Gas Equity Partners, (NYSE:WGP) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Risk & Volatility
Ngl Energy Partners Lp has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Western Gas Equity Partners, has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
This table compares Ngl Energy Partners Lp and Western Gas Equity Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ngl Energy Partners Lp||-0.73%||-5.00%||-1.62%|
|Western Gas Equity Partners,||17.50%||8.78%||4.69%|
Valuation and Earnings
This table compares Ngl Energy Partners Lp and Western Gas Equity Partners,’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ngl Energy Partners Lp||$14.08 billion||0.10||$282.16 million||($1.25)||-8.84|
|Western Gas Equity Partners,||$2.03 billion||4.24||$944.00 million||$1.63||24.10|
Western Gas Equity Partners, has higher revenue, but lower earnings than Ngl Energy Partners Lp. Ngl Energy Partners Lp is trading at a lower price-to-earnings ratio than Western Gas Equity Partners,, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.9% of Ngl Energy Partners Lp shares are owned by institutional investors. Comparatively, 17.8% of Western Gas Equity Partners, shares are owned 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.
Ngl Energy Partners Lp pays an annual dividend of $1.56 per share and has a dividend yield of 14.1%. Western Gas Equity Partners, pays an annual dividend of $2.11 per share and has a dividend yield of 5.4%. Ngl Energy Partners Lp pays out -124.8% of its earnings in the form of a dividend. Western Gas Equity Partners, pays out 129.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Gas Equity Partners, has increased its dividend for 3 consecutive years. Ngl Energy Partners Lp is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent recommendations for Ngl Energy Partners Lp and Western Gas Equity Partners,, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ngl Energy Partners Lp||0||2||3||0||2.60|
|Western Gas Equity Partners,||0||2||7||0||2.78|
Ngl Energy Partners Lp currently has a consensus target price of $17.80, suggesting a potential upside of 61.09%. Western Gas Equity Partners, has a consensus target price of $51.00, suggesting a potential upside of 29.80%. Given Ngl Energy Partners Lp’s higher probable upside, equities analysts plainly believe Ngl Energy Partners Lp is more favorable than Western Gas Equity Partners,.
Western Gas Equity Partners, beats Ngl Energy Partners Lp on 10 of the 15 factors compared between the two stocks.
Ngl Energy Partners Lp Company Profile
NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company’s segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company’s refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.
Western Gas Equity Partners, Company Profile
Western Gas Equity Partners, LP is a limited partnership. The Company is formed to own approximately three types of partnership interests in Western Gas Partners, LP (WES). WES is an master limited partnership (MLP) engaged in the business of gathering, compressing, treating, processing and transporting natural gas, and gathering, stabilizing and transporting condensate, natural gas liquids (NGLs) and crude oil. WES provides these midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. Its assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas. The Bison treating facility treats and compresses gas from coal-bed methane wells in the Powder River Basin of Wyoming. MIGC, LLC receives gas from various coal-bed methane gathering systems in the Powder River Basin and the Hilight system, as well as from WBI Energy Transmission, Inc.
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