Tallgrass Energy (NYSE:TGE) & Rattler Midstream (NYSE:RTLR) Head to Head Contrast

Tallgrass Energy (NYSE:TGE) and Rattler Midstream (NASDAQ:RTLR) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

56.0% of Tallgrass Energy shares are owned by institutional investors. Comparatively, 0.5% of Rattler Midstream shares are owned by institutional investors. 28.6% of Tallgrass Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Tallgrass Energy and Rattler Midstream, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tallgrass Energy 1 6 1 0 2.00
Rattler Midstream 0 4 11 0 2.73

Tallgrass Energy currently has a consensus target price of $24.57, indicating a potential upside of 41.62%. Rattler Midstream has a consensus target price of $22.54, indicating a potential upside of 25.28%. Given Tallgrass Energy’s higher probable upside, equities research analysts clearly believe Tallgrass Energy is more favorable than Rattler Midstream.

Profitability

This table compares Tallgrass Energy and Rattler Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tallgrass Energy 29.12% 10.71% 4.05%
Rattler Midstream N/A N/A N/A

Valuation & Earnings

This table compares Tallgrass Energy and Rattler Midstream’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tallgrass Energy $793.26 million 6.15 $137.12 million $1.27 13.66
Rattler Midstream N/A N/A N/A N/A N/A

Tallgrass Energy has higher revenue and earnings than Rattler Midstream.

Dividends

Tallgrass Energy pays an annual dividend of $2.16 per share and has a dividend yield of 12.4%. Rattler Midstream does not pay a dividend. Tallgrass Energy pays out 170.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Tallgrass Energy beats Rattler Midstream on 8 of the 11 factors compared between the two stocks.

Tallgrass Energy Company Profile

Tallgrass Energy, LP, through its subsidiaries, provides crude oil transportation services to customers in Wyoming, Colorado, Kansas, and the surrounding regions of the United States. The company operates through three segments: Natural Gas Transportation; Crude Oil Transportation; and Gathering, Processing & Terminalling. It also provides natural gas transportation and storage services for customers in the Rocky Mountain, Midwest, and Appalachian regions; natural gas and crude oil gathering and processing services for customers in Wyoming; and natural gas liquids (NGLs) transportation services in Northeast Colorado and Wyoming. In addition, the company offers water business services, including freshwater transportation, and produced water gathering and disposal in Colorado, Texas, Wyoming, and North Dakota; crude oil storage and terminalling services in Colorado, Oklahoma, and Kansas; and marketing services for NGLs and crude oil. The company was formerly known as Tallgrass Energy GP, LP and changed its name to Tallgrass Energy, LP in June 2018. Tallgrass Energy, LP was founded in 2013 and is based in Leawood, Kansas.

Receive News & Ratings for Tallgrass Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tallgrass Energy and related companies with MarketBeat.com's FREE daily email newsletter.