Head to Head Comparison: Dominion Energy Midstream Partners (DM) & EnLink Midstream Partners (ENLK)

Dominion Energy Midstream Partners (NYSE:DM) and EnLink Midstream Partners (NYSE:ENLK) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Risk and Volatility

Dominion Energy Midstream Partners has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500. Comparatively, EnLink Midstream Partners has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.

Dividends

Dominion Energy Midstream Partners pays an annual dividend of $1.40 per share and has a dividend yield of 7.7%. EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 8.6%. Dominion Energy Midstream Partners pays out 103.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream Partners pays out 5,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dominion Energy Midstream Partners and EnLink Midstream Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dominion Energy Midstream Partners 0 10 1 0 2.09
EnLink Midstream Partners 1 8 5 0 2.29

Dominion Energy Midstream Partners currently has a consensus target price of $23.20, indicating a potential upside of 27.82%. EnLink Midstream Partners has a consensus target price of $17.25, indicating a potential downside of 5.43%. Given Dominion Energy Midstream Partners’ higher possible upside, equities research analysts clearly believe Dominion Energy Midstream Partners is more favorable than EnLink Midstream Partners.

Profitability

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

Net Margins Return on Equity Return on Assets
Dominion Energy Midstream Partners 28.46% 2.76% 2.09%
EnLink Midstream Partners 3.89% 6.41% 2.58%

Institutional and Insider Ownership

30.2% of Dominion Energy Midstream Partners shares are owned by institutional investors. Comparatively, 41.3% of EnLink Midstream Partners shares are owned by institutional investors. 11.2% of Dominion Energy Midstream Partners shares are owned by company insiders. Comparatively, 0.2% of EnLink Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Dominion Energy Midstream Partners and EnLink Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dominion Energy Midstream Partners $480.20 million 4.79 $195.10 million $1.35 13.44
EnLink Midstream Partners $5.74 billion 1.11 $148.90 million $0.03 608.00

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

Summary

EnLink Midstream Partners beats Dominion Energy Midstream Partners on 9 of the 16 factors compared between the two stocks.

Dominion Energy Midstream Partners Company Profile

Dominion Energy Midstream Partners, LP owns liquefied natural gas (LNG) terminalling, storage, regasification, and transportation assets. It owns and operates LNG terminalling and storage facility located on the Chesapeake Bay in Lusby, Maryland. The company also operates an interstate pipeline in South Carolina and southeastern Georgia comprising natural gas system consisting of approximately 1,500 miles of transmission pipeline and 5 compressor stations with approximately 34,500 installed compressor horsepower. In addition, it owns and operates a 416-mile interstate natural gas pipeline from the United States-Canadian border at Waddington, New York through the state of Connecticut to South Commack, Long Island, New York and continuing on from Northport, Long Island, New York through the Long Island Sound to Hunts Point, Bronx, New York providing service to local gas distribution companies, electric utilities, and electric power generators, as well as marketers and other end users through interconnecting pipelines and exchanges. Further, the company operates 2,200 miles of natural gas transportation pipelines in northeastern and central Utah, northwestern Colorado, and southwestern Wyoming. Dominion Energy Midstream GP, LLC serves as a general partner of the company. The company was founded in 2000 and is headquartered in Richmond, Virginia.

EnLink Midstream Partners Company Profile

EnLink Midstream Partners, LP, through its subsidiary, EnLink Midstream Operating, LP, provides midstream energy services. It operates through Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate segments. The company provides gathering, transmission, processing, fractionation, storage, condensate stabilization, brine, and marketing services to producers of natural gas, natural gas liquids (NGL), crude oil, and condensate. It operates processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by its own gathering systems or by third-party pipelines; and purchases natural gas and NGLs from producers and other supply sources, and sells that natural gas to utilities, industrial consumers, other marketers, and pipelines. The company also fractionates NGLs into purity products, such as ethane, propane, iso-butane, butane, and natural gasoline. It operates approximately 11,000 miles of pipelines, 20 natural gas processing plants, 7 fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, and brine disposal wells, as well as a crude oil trucking fleet. EnLink Midstream GP, LLC serves as the general partner of the company. The company was formerly known as Crosstex Energy L.P. and changed its name to EnLink Midstream Partners, LP in March 2014. EnLink Midstream Partners, LP was founded in 1992 and is headquartered in Dallas, Texas.

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