Head-To-Head Comparison: Williams Partners (WPZ) vs. Southcross Energy Partners (SXE)

Williams Partners (NYSE: WPZ) and Southcross Energy Partners (NYSE:SXE) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Williams Partners 7.36% 5.42% 2.81%
Southcross Energy Partners -10.35% -13.59% -6.21%

Dividends

Williams Partners pays an annual dividend of $2.46 per share and has a dividend yield of 6.0%. Southcross Energy Partners does not pay a dividend. Williams Partners pays out 149.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Southcross Energy Partners has raised its dividend for 4 consecutive years.

Valuation & Earnings

This table compares Williams Partners and Southcross Energy Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Williams Partners $8.01 billion 5.03 $871.00 million $1.65 25.03
Southcross Energy Partners $665.95 million 0.19 -$67.59 million ($0.84) -1.87

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

Analyst Ratings

This is a summary of current ratings and target prices for Williams Partners and Southcross Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Williams Partners 0 4 12 0 2.75
Southcross Energy Partners 0 1 0 0 2.00

Williams Partners presently has a consensus price target of $44.43, indicating a potential upside of 7.59%. Given Williams Partners’ stronger consensus rating and higher probable upside, research analysts clearly believe Williams Partners is more favorable than Southcross Energy Partners.

Risk & Volatility

Williams Partners has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Southcross Energy Partners has a beta of 4.25, suggesting that its stock price is 325% more volatile than the S&P 500.

Institutional and Insider Ownership

22.0% of Williams Partners shares are owned by institutional investors. Comparatively, 36.6% of Southcross Energy Partners shares are owned by institutional investors. 23.8% of Southcross Energy Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

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

Williams Partners Company Profile

Williams Partners L.P. operates as an energy infrastructure company. It operates through Northeast G&P, Atlantic-Gulf, and West segments. The Northeast G&P segment engages in natural gas gathering, compression, processing, and NGL fractionation businesses in the Marcellus and Utica shale regions in Pennsylvania, West Virginia, New York, and Ohio. The Atlantic-Gulf segment operates Transco interstate natural gas pipeline that extends from the Gulf of Mexico to the eastern seaboard; and natural gas gathering, processing and treating, crude oil production handling, and NGL fractionation assets within the onshore, offshore shelf, and deep-water areas in and around the Gulf Coast states of Texas, Louisiana, Mississippi, and Alabama. This segment also operates various petrochemical and feedstock pipelines in the Gulf Coast region. The West segment operates Northwest Pipeline, an interstate natural gas pipeline, as well as natural gas gathering, processing, and treating assets in Colorado, New Mexico, Wyoming, Louisiana, Texas, Arkansas, and Oklahoma. This segment also operates NGL and natural gas marketing business, and storage facilities. The company owns and operates 33,000 miles of pipelines system providing natural gas for clean-power generation, heating, and industrial use. WPZ GP LLC serves as the general partner of the company. The company was founded in 2005 and is based in Tulsa, Oklahoma. Williams Partners L.P. is a subsidiary of Williams Gas Pipeline Company, LLC.

Southcross Energy Partners Company Profile

Southcross Energy Partners, L.P., together with its subsidiaries, provides natural gas gathering, processing, treating, compression, and transportation services in the United States. The company also offers natural gas liquid (NGL) fractionation and transportation services. In addition, it supplies natural gas to industrial, commercial, and power generation customers, as well as local distribution companies. The company operates 2 gas processing plants, 1 fractionation plant, and gathering and transportation pipelines in South Texas, Mississippi, and Alabama. Southcross Energy Partners GP, LLC operates as a general partner of Southcross Energy Partners, L.P. The company was founded in 2009 and is headquartered in Dallas, Texas. Southcross Energy Partners, L.P. is a subsidiary of Southcross Holdings LP.

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