EQT GP (NYSE:EQGP) and EnLink Midstream Partners (NYSE:ENLK) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
This table compares EQT GP and EnLink Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EnLink Midstream Partners||3.89%||6.41%||2.58%|
9.1% of EQT GP shares are owned by institutional investors. Comparatively, 41.3% of EnLink Midstream Partners shares are owned by institutional investors. 0.2% of EnLink Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares EQT GP and EnLink Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EQT GP||$834.10 million||7.65||$261.99 million||$0.98||21.53|
|EnLink Midstream Partners||$5.74 billion||1.14||$148.90 million||$0.03||620.33|
EQT GP has higher earnings, but lower revenue than EnLink Midstream Partners. EQT GP 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.
This is a summary of recent ratings for EQT GP and EnLink Midstream Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EnLink Midstream Partners||0||9||5||0||2.36|
EQT GP currently has a consensus target price of $27.33, indicating a potential upside of 29.42%. EnLink Midstream Partners has a consensus target price of $17.17, indicating a potential downside of 7.21%. Given EQT GP’s stronger consensus rating and higher probable upside, analysts clearly believe EQT GP is more favorable than EnLink Midstream Partners.
EQT GP pays an annual dividend of $1.22 per share and has a dividend yield of 5.8%. EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 8.4%. EQT GP pays out 124.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. EQT GP has raised its dividend for 2 consecutive years.
Risk and Volatility
EQT GP has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, EnLink Midstream Partners has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500.
EQT GP beats EnLink Midstream Partners on 10 of the 16 factors compared between the two stocks.
EQT GP Company Profile
EQT GP Holdings, LP owns, operates, acquires, and develops midstream energy assets in the Appalachian Basin through owning partnership interests in EQT Midstream Partners, LP (EQM). The company operates in two segments, Gathering and Transmission. EQM offers natural gas transmission, storage, and gathering services to various third parties in Pennsylvania, West Virginia, and Ohio. As of December 31, 2017, it owned and operated 300 miles of high pressure gathering lines and 1,500 miles of Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering lines. EQT GP Services, LLC serves as a general partner of the company. The company was founded in 2015 and is headquartered in Pittsburgh, Pennsylvania. EQT GP Holdings, LP is a subsidiary of EQT Gathering Holdings, LLC.
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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