Exxon Mobil (NYSE: XOM) and American Midstream Partners (NYSE:AMID) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Volatility & Risk
Exxon Mobil has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, American Midstream Partners has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
This is a breakdown of current ratings for Exxon Mobil and American Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Midstream Partners||0||2||0||0||2.00|
Exxon Mobil presently has a consensus target price of $87.62, indicating a potential upside of 13.50%. American Midstream Partners has a consensus target price of $15.00, indicating a potential upside of 23.97%. Given American Midstream Partners’ higher possible upside, analysts plainly believe American Midstream Partners is more favorable than Exxon Mobil.
Exxon Mobil pays an annual dividend of $3.08 per share and has a dividend yield of 4.0%. American Midstream Partners pays an annual dividend of $1.65 per share and has a dividend yield of 13.6%. Exxon Mobil pays out 66.5% of its earnings in the form of a dividend. American Midstream Partners pays out -217.1% 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. American Midstream Partners has raised its dividend for 35 consecutive years. American Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Exxon Mobil and American Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Exxon Mobil||$244.36 billion||1.34||$19.71 billion||$4.63||16.67|
|American Midstream Partners||$232.68 million||3.74||-$3.47 million||($0.76)||-15.92|
Exxon Mobil has higher revenue and earnings than American Midstream Partners. American Midstream Partners is trading at a lower price-to-earnings ratio than Exxon Mobil, indicating that it is currently the more affordable of the two stocks.
This table compares Exxon Mobil and American Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Midstream Partners||0.12%||-11.67%||-2.29%|
Institutional & Insider Ownership
51.3% of Exxon Mobil shares are held by institutional investors. Comparatively, 43.1% of American Midstream Partners shares are held by institutional investors. 0.1% of Exxon Mobil shares are held by company insiders. Comparatively, 5.4% of American Midstream Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Exxon Mobil beats American Midstream Partners on 11 of the 18 factors compared between the two stocks.
About Exxon Mobil
Exxon Mobil Corporation is engaged in energy business. The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. The Company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The Company’s segments include Upstream, Downstream, Chemical, and Corporate and Financing. The Upstream segment operates to explore for and produce crude oil and natural gas. The Downstream operates to manufacture and sell petroleum products. The Chemical segment operates to manufacture and sell petrochemicals. The Company has exploration and development activities in projects located in the United States, Canada/South America, Europe, Africa, Asia and Australia/Oceania.
About American Midstream Partners
American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.
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