EnLink Midstream Partners (NYSE: ENLK) and Summit Midstream Partners (NYSE:SMLP) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
Insider and Institutional Ownership
41.8% of EnLink Midstream Partners shares are held by institutional investors. Comparatively, 48.8% of Summit Midstream Partners shares are held by institutional investors. 0.2% of EnLink Midstream Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares EnLink Midstream Partners and Summit Midstream 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||1.50||-$565.20 million||($0.23)||-79.65|
|Summit Midstream Partners||$402.36 million||4.14||-$40.91 million||$1.46||15.31|
Summit Midstream Partners has lower revenue, but higher earnings than EnLink Midstream Partners. EnLink Midstream Partners is trading at a lower price-to-earnings ratio than Summit Midstream Partners, indicating that it is currently the more affordable of the two stocks.
EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 8.5%. Summit Midstream Partners pays an annual dividend of $2.30 per share and has a dividend yield of 10.3%. EnLink Midstream Partners pays out -678.3% of its earnings in the form of a dividend. Summit Midstream Partners pays out 157.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
EnLink Midstream Partners has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Summit Midstream Partners has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
This is a breakdown of recent recommendations for EnLink Midstream Partners and Summit Midstream Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EnLink Midstream Partners||0||8||3||0||2.27|
|Summit Midstream Partners||1||1||3||0||2.40|
EnLink Midstream Partners presently has a consensus target price of $17.90, indicating a potential downside of 2.29%. Summit Midstream Partners has a consensus target price of $25.00, indicating a potential upside of 11.86%. Given Summit Midstream Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Summit Midstream Partners is more favorable than EnLink Midstream Partners.
This table compares EnLink Midstream Partners and Summit Midstream 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%|
|Summit Midstream Partners||24.14%||11.61%||4.31%|
Summit Midstream Partners beats EnLink Midstream Partners on 11 of the 15 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.
Summit Midstream Partners Company Profile
Summit Midstream Partners, LP focuses on developing, owning and operating midstream energy infrastructure assets. The Company’s segments include the Utica Shale, which includes its ownership interest in Ohio Gathering, as well as Summit Utica; the Williston Basin, which includes Bison Midstream, Polar and Divide and Tioga Midstream; the Marcellus Shale, which includes Mountaineer Midstream; the Barnett Shale, which includes DFW Midstream Services LLC (DFW Midstream), and the Piceance Basin /DJ Basins, which includes Grand River and Niobrara G&P. The Company’s assets are located in the producing areas of unconventional resource basins, primarily shale formations, in the continental United States. It provides natural gas gathering, treating and processing services, as well as crude oil and produced water gathering services pursuant to long-term and fee-based agreements with its customers.
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