Contrasting Hess Midstream Partners (HESM) and GasLog Partners (GLOP)

Hess Midstream Partners (NYSE: HESM) and GasLog Partners (NYSE:GLOP) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Insider & Institutional Ownership

57.1% of Hess Midstream Partners shares are held by institutional investors. Comparatively, 42.1% of GasLog Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Hess Midstream Partners pays an annual dividend of $1.24 per share and has a dividend yield of 5.8%. GasLog Partners pays an annual dividend of $2.07 per share and has a dividend yield of 9.3%. GasLog Partners pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. GasLog Partners has increased its dividend for 2 consecutive years. GasLog Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Hess Midstream Partners and GasLog Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hess Midstream Partners 28.19% 6.64% 6.15%
GasLog Partners 34.89% 12.44% 5.17%

Analyst Recommendations

This is a breakdown of recent ratings for Hess Midstream Partners and GasLog Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hess Midstream Partners 0 0 5 0 3.00
GasLog Partners 0 1 3 0 2.75

Hess Midstream Partners presently has a consensus target price of $28.80, indicating a potential upside of 33.95%. GasLog Partners has a consensus target price of $26.50, indicating a potential upside of 18.83%. Given Hess Midstream Partners’ stronger consensus rating and higher possible upside, research analysts clearly believe Hess Midstream Partners is more favorable than GasLog Partners.

Valuation & Earnings

This table compares Hess Midstream Partners and GasLog Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hess Midstream Partners $509.80 million 1.15 $206.30 million N/A N/A
GasLog Partners $228.74 million 3.96 $77.34 million $2.14 10.42

Hess Midstream Partners has higher revenue and earnings than GasLog Partners.

Summary

Hess Midstream Partners beats GasLog Partners on 8 of the 13 factors compared between the two stocks.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP is a fee-based, traditional master limited partnership formed to own, operate, develop and acquire a set of midstream assets to provide services to Hess and third-party crude oil and natural gas producers. The Company’s assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota (collectively referred as the Bakken). It operates its business through three segments: gathering; processing and storage; and terminaling and export. The Company’s gathering business consisted of its 20% controlling economic interest in Gathering Opco, which owns North Dakota natural gas, natural gas liquids and crude oil gathering systems. The Company’s processing and storage business consisted of its 20% controlling economic interest in the Tioga Gas Plant and its 100% interest in the Mentor Storage Terminal. The Company’s terminaling and export business consisted of its 20% controlling economic interest in Logistics Opco.

GasLog Partners Company Profile

GasLog Partners LP is a limited partnership company. The Company focuses on owning, operating and acquiring liquefied natural gas (LNG) carriers under multi-year charters. The Company’s fleet consists of 9 LNG carriers with an average carrying capacity of approximately 149,500 cubic meters (cbm), each of which has a multi-year time charter. The Company’s fleet includes GasLog Seattle, GasLog Shanghai, GasLog Santiago, GasLog Sydney, Methane Rita Andrea, Methane Jane Elizabeth, Methane Alison Victoria, Methane Shirley Elisabeth and Methane Heather Sally. The GasLog Seattle is a tri-fuel diesel electric LNG carrier. Each of the GasLog Seattle, GasLog Shanghai, GasLog Santiago and GasLog Sydney vessels has a cargo capacity of approximately 155,000 cbm. Each of the Methane Rita Andrea, Methane Heather Sally, Methane Shirley Elisabeth, Methane Alison Victoria and Methane Jane Elizabeth vessels has a cargo capacity of approximately 145,000 cbm.

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