Analyzing Western Gas Partners, (WES) & The Competition
Western Gas Partners, (NYSE: WES) is one of 44 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it compare to its peers? We will compare Western Gas Partners, to similar businesses based on the strength of its institutional ownership, risk, earnings, valuation, dividends, analyst recommendations and profitability.
Western Gas Partners, pays an annual dividend of $3.62 per share and has a dividend yield of 7.8%. Western Gas Partners, pays out 294.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.0% and pay out 405.6% of their earnings in the form of a dividend. Western Gas Partners, has increased its dividend for 9 consecutive years. Western Gas Partners, is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Western Gas Partners, and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Western Gas Partners,||$1.80 billion||$591.33 million||37.80|
|Western Gas Partners, Competitors||$40.28 billion||$687.43 million||254.22|
Western Gas Partners,’s peers have higher revenue and earnings than Western Gas Partners,. Western Gas Partners, is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings for Western Gas Partners, and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Gas Partners,||1||4||7||0||2.50|
|Western Gas Partners, Competitors||379||1851||2460||112||2.48|
Western Gas Partners, presently has a consensus price target of $60.45, indicating a potential upside of 30.01%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 4.38%. Given Western Gas Partners,’s stronger consensus rating and higher probable upside, analysts clearly believe Western Gas Partners, is more favorable than its peers.
Institutional and Insider Ownership
59.6% of Western Gas Partners, shares are held by institutional investors. Comparatively, 47.3% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 0.0% of Western Gas Partners, shares are held by company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Western Gas Partners, and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Gas Partners,||26.41%||14.68%||7.24%|
|Western Gas Partners, Competitors||-1.54%||2.04%||1.35%|
Volatility & Risk
Western Gas Partners, has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Western Gas Partners,’s peers have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.
Western Gas Partners, beats its peers on 9 of the 15 factors compared.
Western Gas Partners, Company Profile
Western Gas Partners, LP is a master limited partnership (MLP) that acquires, owns, develops and operates midstream energy assets. The Company is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil in the United States. The Company provides midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. The Company’s operations and activities are managed by its general partner, which is indirectly controlled by Anadarko through Western Gas Equity Partners, LP (WGP). As of December 31, 2016, its assets and investments consisted of gathering systems, treating facilities, natural gas processing plants/trains, NGL pipelines, natural gas pipelines and oil pipelines. These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas.
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