Head to Head Analysis: CNX Midstream Partners (CNXM) vs. Tc Pipelines (TRP)

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

Insider and Institutional Ownership

60.6% of Tc Pipelines shares are owned by institutional investors. Comparatively, 30.0% of CNX Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tc Pipelines and CNX Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tc Pipelines 1 3 6 0 2.50
CNX Midstream Partners 0 2 5 0 2.71

Tc Pipelines presently has a consensus target price of $48.25, suggesting a potential upside of 22.62%. CNX Midstream Partners has a consensus target price of $24.00, suggesting a potential upside of 26.58%. Given CNX Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe CNX Midstream Partners is more favorable than Tc Pipelines.

Risk and Volatility

Tc Pipelines has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, CNX Midstream Partners has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Dividends

Tc Pipelines pays an annual dividend of $2.13 per share and has a dividend yield of 5.4%. CNX Midstream Partners pays an annual dividend of $1.34 per share and has a dividend yield of 7.1%. Tc Pipelines pays out 89.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CNX Midstream Partners pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CNX Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Tc Pipelines and CNX Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tc Pipelines $10.37 billion 3.47 $2.44 billion $2.38 16.53
CNX Midstream Partners $233.85 million 5.16 $114.99 million $1.72 11.02

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

Profitability

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

Net Margins Return on Equity Return on Assets
Tc Pipelines 23.37% 12.90% 3.45%
CNX Midstream Partners 46.16% 19.10% 12.51%

Summary

CNX Midstream Partners beats Tc Pipelines on 9 of the 15 factors compared between the two stocks.

Tc Pipelines Company Profile

TransCanada Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Energy segments. The company transports natural gas to local distribution companies, power generation and individual facilities, interconnecting pipelines, and other businesses. It owns and operates a network of 80,800 km of wholly-owned natural gas pipelines and 11,100 km of partially-owned natural gas pipelines; and regulated natural gas storage facilities with a total working gas capacity of 535 Bcf. The company also owns and operates Keystone pipeline system of 4,324 km for the transportation of crude oil from Hardisty, Alberta to Wood River and Patoka in Illinois; Cushing, Oklahoma; and the U.S. Gulf Coast. In addition, it operates terminal and pipeline facilities to transport crude oil from the market hub at Cushing, Oklahoma to the U.S. Gulf Coast refining markets. Further, the company owns, controls, and develops approximately 7,000 MW of generation capacity powered by natural gas, nuclear, and wind assets; and owns and operates regulated and unregulated natural gas storage facilities. It also operates 11 power generation facilities and 118 Bcf of non-regulated natural gas storage facilities in Alberta, Ontario, Qu├ębec, and New Brunswick in Canada, as well as in Arizona. TransCanada Corporation was founded in 1951 and is headquartered in Calgary, Canada.

CNX Midstream Partners Company Profile

CNX Midstream Partners LP owns, operates, develops, and acquires natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. As of December 31, 2017, the company operates 18 compression and dehydration facilities. It also operates condensate handling facilities with handling capacities of 2,500 Bbl/d each in Majorsville, Pennsylvania, as well as Moundsville, West Virginia that provide condensate gathering, collection, separation, and stabilization services. CNX Midstream GP LLC serves as a general partner of the company. The company was formerly known as CONE Midstream Partners LP and changed its name to CNX Midstream Partners LP in January 2018. CNX Midstream Partners LP was founded in 2014 and is based in Canonsburg, Pennsylvania.

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