Head-To-Head Contrast: Cameco (NYSE:CCJ) and Hess Midstream Partners (NYSE:HESM)

Hess Midstream Partners (NYSE:HESM) and Cameco (NYSE:CCJ) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

99.0% of Hess Midstream Partners shares are owned by institutional investors. Comparatively, 70.2% of Cameco shares are owned by institutional investors. 1.0% of Cameco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hess Midstream Partners and Cameco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hess Midstream Partners	$1.60 billion	3.99	$352.90 million	$2.92	10.60
Cameco	$2.49 billion	12.36	$421.96 million	$0.66	107.14

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

Analyst Ratings

This is a breakdown of current ratings for Hess Midstream Partners and Cameco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hess Midstream Partners	3	5	1	0	1.78
Cameco	0	4	12	0	2.75

Hess Midstream Partners currently has a consensus price target of $33.25, suggesting a potential upside of 7.45%. Cameco has a consensus price target of $148.12, suggesting a potential upside of 109.48%. Given Cameco’s stronger consensus rating and higher possible upside, analysts clearly believe Cameco is more favorable than Hess Midstream Partners.

Profitability

This table compares Hess Midstream Partners and Cameco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hess Midstream Partners	23.49%	93.86%	8.78%
Cameco	11.44%	7.01%	4.84%

Risk & Volatility

Hess Midstream Partners has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Cameco has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Dividends

Hess Midstream Partners pays an annual dividend of $3.19 per share and has a dividend yield of 10.3%. Cameco pays an annual dividend of $0.17 per share and has a dividend yield of 0.2%. Hess Midstream Partners pays out 109.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cameco pays out 25.8% of its earnings in the form of a dividend. Hess Midstream Partners has increased its dividend for 8 consecutive years and Cameco has increased its dividend for 1 consecutive years. Hess Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Cameco beats Hess Midstream Partners on 10 of the 17 factors compared between the two stocks.

About Hess Midstream Partners

Hess Midstream LP owns and operates midstream infrastructure that gathers, processes, transports and stores crude oil, natural gas and natural gas liquids produced in the Bakken and Three Forks formations. Its services support oil and gas production in the Williston Basin of North Dakota. The company’s assets include crude oil and natural gas gathering systems, natural gas compression and processing facilities, and infrastructure for transporting and handling natural gas liquids. It also provides water gathering and disposal services used in oil and gas operations.

About Cameco

Cameco is a Canadian uranium company involved in the exploration, mining, milling, refining and conversion of uranium. Its operations include major uranium assets in Saskatchewan, and it has an interest in the Inkai uranium operation in Kazakhstan. The company supplies uranium and related products to nuclear energy producers around the world. Cameco also provides nuclear fuel services, including uranium conversion and the manufacture of fuel bundles for CANDU reactors. In addition, it owns a 49% interest in Westinghouse Electric Company, a supplier of nuclear power plant technologies, services and fuel.