CNX Midstream Partners (NYSE: CNXM) and Boardwalk Pipeline Partners (NYSE:BWP) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Earnings and Valuation

This table compares CNX Midstream Partners and Boardwalk Pipeline Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNX Midstream Partners $239.21 million 2.82 $96.48 million $1.70 11.53
Boardwalk Pipeline Partners $1.31 billion 2.58 $302.20 million $1.18 11.43

Boardwalk Pipeline Partners has higher revenue and earnings than CNX Midstream Partners. Boardwalk Pipeline Partners is trading at a lower price-to-earnings ratio than CNX Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

CNX Midstream Partners pays an annual dividend of $1.21 per share and has a dividend yield of 6.2%. Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. CNX Midstream Partners pays out 71.2% of its earnings in the form of a dividend. Boardwalk Pipeline Partners pays out 33.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares CNX Midstream Partners and Boardwalk Pipeline Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNX Midstream Partners 48.40% 15.22% 12.15%
Boardwalk Pipeline Partners 22.50% 7.55% 4.00%

Risk & Volatility

CNX Midstream Partners has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Boardwalk Pipeline Partners has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for CNX Midstream Partners and Boardwalk Pipeline Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNX Midstream Partners 0 4 5 0 2.56
Boardwalk Pipeline Partners 1 3 3 0 2.29

CNX Midstream Partners presently has a consensus price target of $22.43, indicating a potential upside of 14.43%. Boardwalk Pipeline Partners has a consensus price target of $19.33, indicating a potential upside of 43.32%. Given Boardwalk Pipeline Partners’ higher possible upside, analysts clearly believe Boardwalk Pipeline Partners is more favorable than CNX Midstream Partners.

Insider and Institutional Ownership

37.4% of CNX Midstream Partners shares are held by institutional investors. Comparatively, 97.2% of Boardwalk Pipeline Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

CNX Midstream Partners beats Boardwalk Pipeline Partners on 10 of the 15 factors compared between the two stocks.

About CNX Midstream Partners

CONE Midstream Partners LP is a master limited partnership formed by CONSOL Energy Inc. (CONSOL) and Noble Energy, Inc. (Noble Energy). The Company owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service CONSOL’s and Noble Energy’s production in the Marcellus Shale in Pennsylvania and West Virginia. Its assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. It operates through three segments: Anchor Systems, Growth Systems and Additional Systems. Its Anchor Systems include developed midstream systems, including its three midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. Its Growth Systems are located in the dry gas regions of its dedicated acreage. Its Additional Systems include various gathering systems located in the wet gas regions of its dedicated acreage.

About Boardwalk Pipeline Partners

Boardwalk Pipeline Partners, LP is a limited partnership company. The Company’s business includes integrated natural gas and natural gas liquids, and other hydrocarbons (referred to together as NGLs) pipeline and storage systems. The Company is engaged in the operation of interstate natural gas and NGLs pipeline systems, and integrated storage facilities, including interstate natural gas pipeline systems located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, and its NGLs pipelines and storage facilities in Louisiana and Texas. The Company conducts business through its subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines), and its subsidiaries, Gulf South Pipeline Company, LP, Texas Gas Transmission, LLC, Gulf Crossing Pipeline Company LLC, Boardwalk Louisiana Midstream, LLC, Boardwalk Petrochemical Pipeline, LLC and Boardwalk Field Services, LLC.

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