Head-To-Head Comparison: Boardwalk Pipeline Partners (BWP) & Antero Midstream GP (AMGP)

Boardwalk Pipeline Partners (NYSE: BWP) and Antero Midstream GP (NYSE:AMGP) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Dividends

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Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.9%. Antero Midstream GP pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Boardwalk Pipeline Partners pays out 29.6% of its earnings in the form of a dividend. Antero Midstream GP pays out 1,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boardwalk Pipeline Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Boardwalk Pipeline Partners and Antero Midstream GP’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boardwalk Pipeline Partners $1.32 billion 1.92 $297.00 million $1.35 7.52
Antero Midstream GP $69.72 million 42.70 $2.32 million $0.03 533.00

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Boardwalk Pipeline Partners and Antero Midstream GP, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boardwalk Pipeline Partners 1 3 3 0 2.29
Antero Midstream GP 0 4 12 1 2.82

Boardwalk Pipeline Partners presently has a consensus price target of $18.14, suggesting a potential upside of 78.75%. Antero Midstream GP has a consensus price target of $25.71, suggesting a potential upside of 60.76%. Given Boardwalk Pipeline Partners’ higher probable upside, research analysts clearly believe Boardwalk Pipeline Partners is more favorable than Antero Midstream GP.

Insider & Institutional Ownership

93.7% of Boardwalk Pipeline Partners shares are held by institutional investors. Comparatively, 73.0% of Antero Midstream GP shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Boardwalk Pipeline Partners and Antero Midstream GP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boardwalk Pipeline Partners 22.46% 7.38% 3.92%
Antero Midstream GP 4.58% 22.05% 11.93%

Summary

Boardwalk Pipeline Partners beats Antero Midstream GP on 8 of the 15 factors compared between the two stocks.

About Boardwalk Pipeline Partners

Boardwalk Pipeline Partners, LP is a limited partnership company. The Company’s business includes integrated natural gas and natural gas liquids, and other hydrocarbons (referred to together as NGLs) pipeline and storage systems. The Company is engaged in the operation of interstate natural gas and NGLs pipeline systems, and integrated storage facilities, including interstate natural gas pipeline systems located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, and its NGLs pipelines and storage facilities in Louisiana and Texas. The Company conducts business through its subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines), and its subsidiaries, Gulf South Pipeline Company, LP, Texas Gas Transmission, LLC, Gulf Crossing Pipeline Company LLC, Boardwalk Louisiana Midstream, LLC, Boardwalk Petrochemical Pipeline, LLC and Boardwalk Field Services, LLC.

About Antero Midstream GP

Antero Midstream GP LP, formerly Antero Resources Midstream Management LLC, owns, operates and develops midstream energy infrastructure. The Company’s segments include gathering and processing and water handling and treatment. The gathering and processing segment consist of long-term, fee-based activities including low-pressure gathering, compression, high-pressure gathering, processing, fractionation, and condensate gathering. The Company’s water handling and treatment segment consists of long-term fee based activities including fresh water delivery used in completion activity, and water handling services. The Company’s assets are located both in the southwestern core of the Marcellus Shale in northwest West Virginia and in the core of the Utica Shale in southern Ohio.

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