EnLink Midstream Partners (NYSE: ENLK) and Southcross Energy Partners (NYSE:SXE) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares EnLink Midstream Partners and Southcross Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnLink Midstream Partners 0.76% 1.20% 0.53%
Southcross Energy Partners -13.74% -16.59% -7.83%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for EnLink Midstream Partners and Southcross Energy Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnLink Midstream Partners 0 7 3 0 2.30
Southcross Energy Partners 0 1 0 0 2.00

EnLink Midstream Partners currently has a consensus price target of $18.13, suggesting a potential upside of 17.92%. Given EnLink Midstream Partners’ stronger consensus rating and higher probable upside, research analysts clearly believe EnLink Midstream Partners is more favorable than Southcross Energy Partners.

Institutional & Insider Ownership

41.7% of EnLink Midstream Partners shares are held by institutional investors. Comparatively, 3.0% of Southcross Energy Partners shares are held by institutional investors. 0.2% of EnLink Midstream Partners shares are held by company insiders. Comparatively, 23.8% of Southcross Energy Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares EnLink Midstream Partners and Southcross Energy Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EnLink Midstream Partners $4.25 billion 1.26 -$565.20 million ($0.23) -66.83
Southcross Energy Partners $548.72 million 0.24 -$94.94 million ($1.21) -1.40

Southcross Energy Partners has lower revenue, but higher earnings than EnLink Midstream Partners. EnLink Midstream Partners is trading at a lower price-to-earnings ratio than Southcross Energy Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 10.1%. Southcross Energy Partners does not pay a dividend. EnLink Midstream Partners pays out -678.3% of its earnings in the form of a dividend. EnLink Midstream Partners has increased its dividend for 2 consecutive years and Southcross Energy Partners has increased its dividend for 3 consecutive years.

Risk and Volatility

EnLink Midstream Partners has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500. Comparatively, Southcross Energy Partners has a beta of 4.01, suggesting that its share price is 301% more volatile than the S&P 500.

Summary

EnLink Midstream Partners beats Southcross Energy Partners on 12 of the 17 factors compared between the two stocks.

EnLink Midstream Partners Company Profile

EnLink Midstream Partners, LP is a midstream company. The Company’s business activities are conducted through its subsidiary, EnLink Midstream Operating, LP (the Operating Partnership) and the subsidiaries of the Operating Partnership. The Company operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Company focuses on providing midstream energy services, including gathering, processing, transmission, fractionation, storage, condensate stabilization, brine services and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate. As of December 31, 2016, its midstream energy asset network included approximately 11,000 miles of pipelines, 20 natural gas processing plants, seven fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain private midstream companies.

Southcross Energy Partners Company Profile

Southcross Energy Partners, L.P. provides natural gas gathering, processing, treating, compression and transportation services and natural gas liquid (NGL) fractionation and transportation services. The Company also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama As of December 31, 2016, its assets consisted of gathering systems, intrastate pipelines, two natural gas processing plants, one fractionation facility, 20 compressor stations and a treating system. Its gathering systems and intrastate pipelines include South Texas and Mississippi/Alabama. The assets in its South Texas region are located between Montgomery County, which is north of Houston, and Webb and Dimmit Counties near the Texas-Mexico border. The assets in its Mississippi region are located principally in the southern half of the state and consist of intrastate pipeline system in Mississippi.

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