Critical Review: EQT Midstream Partners, (EQM) and Sunoco Logistics Partners (ETP)
EQT Midstream Partners, (NYSE: EQM) and Sunoco Logistics Partners (NYSE:ETP) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
EQT Midstream Partners, pays an annual dividend of $3.74 per share and has a dividend yield of 5.2%. Sunoco Logistics Partners pays an annual dividend of $2.20 per share and has a dividend yield of 12.7%. EQT Midstream Partners, pays out 71.6% of its earnings in the form of a dividend. Sunoco Logistics Partners pays out 440.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT Midstream Partners, has raised its dividend for 4 consecutive years and Sunoco Logistics Partners has raised its dividend for 4 consecutive years.
Volatility and Risk
EQT Midstream Partners, has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Sunoco Logistics Partners has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Valuation & Earnings
This table compares EQT Midstream Partners, and Sunoco Logistics Partners’ gross 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||7.53||$623.10 million||$5.22||13.87|
|Sunoco Logistics Partners||$25.53 billion||0.75||$4.81 billion||$0.50||34.60|
Sunoco Logistics Partners has higher revenue and earnings than EQT Midstream Partners,. EQT Midstream Partners, is trading at a lower price-to-earnings ratio than Sunoco Logistics Partners, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
73.3% of EQT Midstream Partners, shares are held by institutional investors. Comparatively, 58.3% of Sunoco Logistics Partners shares are held by institutional investors. 3.7% of Sunoco Logistics Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares EQT Midstream Partners, and Sunoco Logistics Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EQT Midstream Partners,||65.99%||25.85%||16.59%|
|Sunoco Logistics Partners||3.57%||4.67%||2.04%|
This is a summary of recent recommendations and price targets for EQT Midstream Partners, and Sunoco Logistics Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EQT Midstream Partners,||0||2||5||0||2.71|
|Sunoco Logistics Partners||0||3||12||0||2.80|
EQT Midstream Partners, presently has a consensus price target of $91.50, suggesting a potential upside of 26.42%. Sunoco Logistics Partners has a consensus price target of $26.31, suggesting a potential upside of 52.07%. Given Sunoco Logistics Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Sunoco Logistics Partners is more favorable than EQT Midstream Partners,.
Sunoco Logistics Partners beats EQT Midstream Partners, on 8 of the 15 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.
Sunoco Logistics Partners Company Profile
Energy Transfer Partners, L.P., formerly Sunoco Logistics Partners L.P., owns and operates a logistics business. The Company is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids (NGLs). The Company’s segments include Crude Oil, Natural Gas Liquids and Refined Products. In addition to logistics services, it also owns acquisition and marketing assets. The Crude Oil segment provides transportation, terminaling and acquisition and marketing services to crude oil markets throughout the southwest, midwest and northeastern United States. The Natural Gas Liquids segment transports, stores, and executes acquisition and marketing activities utilizing a network of pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple NGL markets. The Refined Products segment provides transportation and terminaling services, using refined products pipelines and refined products marketing terminals.
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