Head-To-Head Analysis: Tallgrass Energy Partners (TEP) vs. Crestwood Midstream Partners (CMLP)

Tallgrass Energy Partners (NYSE: TEP) and Crestwood Midstream Partners (NYSE:CMLP) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Earnings and Valuation

This table compares Tallgrass Energy Partners and Crestwood Midstream Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tallgrass Energy Partners $655.90 million 4.62 $433.99 million $3.90 10.63
Crestwood Midstream Partners N/A N/A N/A ($0.76) -8.13

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


Tallgrass Energy Partners pays an annual dividend of $3.86 per share and has a dividend yield of 9.3%. Crestwood Midstream Partners does not pay a dividend. Tallgrass Energy Partners pays out 99.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crestwood Midstream Partners has increased its dividend for 4 consecutive years.

Institutional and Insider Ownership

61.1% of Tallgrass Energy Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tallgrass Energy Partners and Crestwood Midstream Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tallgrass Energy Partners 0 4 7 0 2.64
Crestwood Midstream Partners 0 0 0 0 N/A

Tallgrass Energy Partners presently has a consensus price target of $49.63, indicating a potential upside of 19.75%. Given Tallgrass Energy Partners’ higher probable upside, equities analysts plainly believe Tallgrass Energy Partners is more favorable than Crestwood Midstream Partners.


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

Net Margins Return on Equity Return on Assets
Tallgrass Energy Partners 66.17% 28.25% 11.21%
Crestwood Midstream Partners -3.12% -6.04% -2.56%


Tallgrass Energy Partners beats Crestwood Midstream Partners on 10 of the 12 factors compared between the two stocks.

About Tallgrass Energy Partners

Tallgrass Energy Partners, LP owns, operates, acquires and develops midstream energy assets in North America. The Company operates through three segments: Crude Oil Transportation & Logistics, Natural Gas Transportation & Logistics and Processing & Logistics. The Crude Oil Transportation & Logistics segment includes the ownership and operation of a Federal Energy Regulatory Commission (FERC) crude oil pipeline system, and crude oil storage and terminaling facilities. The Natural Gas Transportation & Logistics segment is engaged in the ownership and operation of FERC regulated interstate natural gas pipelines and integrated natural gas storage facilities. The Processing & Logistics segment is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities; the provision of water business services primarily to the oil and gas exploration and production industry, and the transportation of natural gas liquids (NGLs).

About Crestwood Midstream Partners

Crestwood Midstream Partners LP (Crestwood) develops, acquires, owns and operates primarily fee-based assets and operations within the energy midstream sector. The Company has three reporting segments: gathering and processing (G&P), providing natural gas gathering, processing, treating and compression services to producers in multiple unconventional shale plays; storage and transportation, which owns and operates natural gas storage facilities, and NGL and crude services, including crude oil rail terminals, the Arrow gathering system, its fleet of over-the-road crude oil and produced water transportation assets, an NGL storage facility, and US Salt, LLC. It provides infrastructure solutions across the value chain to service liquids-rich and crude oil shale plays across the United States. It owns and operates a portfolio of crude oil and natural gas gathering, processing, storage and transportation assets that connect fundamental energy supply with energy demand across North America.

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