EQM Midstream Partners (NYSE:EQM) and ENERGY TRANSFER/UT LTD PARTN INT (NYSE:ET) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
This is a breakdown of current ratings and target prices for EQM Midstream Partners and ENERGY TRANSFER/UT LTD PARTN INT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EQM Midstream Partners||0||4||9||0||2.69|
|ENERGY TRANSFER/UT LTD PARTN INT||0||0||1||0||3.00|
Earnings and Valuation
This table compares EQM Midstream Partners and ENERGY TRANSFER/UT LTD PARTN INT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EQM Midstream Partners||$834.10 million||7.19||$571.90 million||$5.19||9.48|
|ENERGY TRANSFER/UT LTD PARTN INT||$40.52 billion||0.41||$915.00 million||$1.21||11.96|
ENERGY TRANSFER/UT LTD PARTN INT has higher revenue and earnings than EQM Midstream Partners. EQM Midstream Partners is trading at a lower price-to-earnings ratio than ENERGY TRANSFER/UT LTD PARTN INT, indicating that it is currently the more affordable of the two stocks.
This table compares EQM Midstream Partners and ENERGY TRANSFER/UT LTD PARTN INT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EQM Midstream Partners||60.71%||22.30%||11.49%|
|ENERGY TRANSFER/UT LTD PARTN INT||2.58%||5.68%||1.98%|
Risk and Volatility
EQM Midstream Partners has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, ENERGY TRANSFER/UT LTD PARTN INT has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
Insider and Institutional Ownership
59.7% of EQM Midstream Partners shares are held by institutional investors. Comparatively, 45.3% of ENERGY TRANSFER/UT LTD PARTN INT shares are held by institutional investors. 3.3% of ENERGY TRANSFER/UT LTD PARTN INT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
EQM Midstream Partners pays an annual dividend of $4.46 per share and has a dividend yield of 9.1%. ENERGY TRANSFER/UT LTD PARTN INT pays an annual dividend of $1.22 per share and has a dividend yield of 8.4%. EQM Midstream Partners pays out 85.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ENERGY TRANSFER/UT LTD PARTN INT pays out 100.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQM Midstream Partners has raised its dividend for 5 consecutive years. EQM Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
EQM Midstream Partners beats ENERGY TRANSFER/UT LTD PARTN INT on 10 of the 17 factors compared between the two stocks.
About EQM Midstream Partners
EQM Midstream Partners, LP provides natural gas gathering, transmission, and storage services in Pennsylvania, West Virginia, and Ohio. The company owns, operates, acquires, and develops midstream assets in the Appalachian Basin. The company also owns approximately 300 miles of high pressure gathering lines and 1,500 miles of federal energy regulatory commission (FERC) regulated low pressure gathering lines; and approximately 950 miles of FERC regulated interstate pipelines. It serves local distribution companies, marketers, producers, and commercial and industrial users. The company was formerly known as EQT Midstream Partners, LP and changed its name to EQM Midstream Partners, LP in October 2018. EQM Midstream Services, LLC serves as the general partner of the company. EQM Midstream Partners, LP is headquartered in Pittsburgh, Pennsylvania.
About ENERGY TRANSFER/UT LTD PARTN INT
Energy Transfer LP provides diversified energy-related services in the United States. It owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and approximately 11,800 miles of interstate natural gas pipelines. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. It owns and operates natural gas and natural gas liquid (NGL) gathering pipelines, as well as natural gas processing plants, treating facilities, and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; a natural gas gathering system in Ohio; and transportation and supply of water to natural gas producers in Pennsylvania. The company also owns approximately 4,300 miles of NGL pipelines, 5 NGL and propane fractionation facilities, and NGL storage facilities with aggregate working storage capacity of approximately 53 million barrels. It also sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. The company provides natural gas compression services; treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates a total of 75 megawatts electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. The company was founded in 2002 and is based in Dallas, Texas.
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