Equitrans Midstream (NYSE:ETRN) and Enterprise Products Partners (NYSE:EPD) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Earnings and Valuation
This table compares Equitrans Midstream and Enterprise Products Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Equitrans Midstream||$1.63 billion||2.10||-$203.74 million||$3.00||2.64|
|Enterprise Products Partners||$32.79 billion||1.29||$4.59 billion||$2.15||9.02|
Enterprise Products Partners has higher revenue and earnings than Equitrans Midstream. Equitrans Midstream is trading at a lower price-to-earnings ratio than Enterprise Products Partners, indicating that it is currently the more affordable of the two stocks.
Equitrans Midstream pays an annual dividend of $0.60 per share and has a dividend yield of 7.6%. Enterprise Products Partners pays an annual dividend of $1.78 per share and has a dividend yield of 9.2%. Equitrans Midstream pays out 20.0% of its earnings in the form of a dividend. Enterprise Products Partners pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equitrans Midstream has raised its dividend for 1 consecutive years and Enterprise Products Partners has raised its dividend for 20 consecutive years. Enterprise Products Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Equitrans Midstream and Enterprise Products Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enterprise Products Partners||16.10%||17.78%||7.45%|
This is a summary of recent ratings and target prices for Equitrans Midstream and Enterprise Products Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enterprise Products Partners||0||0||11||1||3.08|
Equitrans Midstream presently has a consensus target price of $11.00, suggesting a potential upside of 38.89%. Enterprise Products Partners has a consensus target price of $24.33, suggesting a potential upside of 25.49%. Given Equitrans Midstream’s higher possible upside, research analysts plainly believe Equitrans Midstream is more favorable than Enterprise Products Partners.
Institutional & Insider Ownership
94.7% of Equitrans Midstream shares are owned by institutional investors. Comparatively, 32.5% of Enterprise Products Partners shares are owned by institutional investors. 0.5% of Equitrans Midstream shares are owned by company insiders. Comparatively, 37.5% of Enterprise Products Partners shares are owned by company 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.
Volatility and Risk
Equitrans Midstream has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500. Comparatively, Enterprise Products Partners has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Enterprise Products Partners beats Equitrans Midstream on 12 of the 18 factors compared between the two stocks.
About Equitrans Midstream
Equitrans Midstream Corporation owns, operates, acquires, and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin. It operates through three segments: Gathering, Transmission, and Water. The Gathering System segment include 990 miles of high-pressure gathering lines with compression of approximately 445,000 horsepower and multiple interconnect points; and approximately 920 miles of Federal Energy Regulatory Commission (FERC) low-pressure gathering lines. Its Transmission and Storage System segment comprises 950 miles of FERC regulated interstate pipeline that connects to seven interstate pipelines and local distribution companies. The Water System segment include two independent systems comprised approximately 180 miles of pipeline that deliver fresh water from the Monongahela River, the Ohio River, local reservoirs, and various regional waterways. Equitrans Midstream Corporation was founded in 2018 and is headquartered in Canonsburg, Pennsylvania.
About Enterprise Products Partners
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates approximately 19,900 miles of NGL pipelines; NGL and related product storage facilities; 16 NGL fractionators; 22 natural gas processing facilities; and liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,300 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma, New Mexico, and Texas, as well as a fleet of 310 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,400 miles of natural gas pipeline systems to gather, treat, and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It is also involved in natural gas marketing activities. The Petrochemical & Refined Products Services segment operates propylene production facilities; butane isomerization complex and related deisobutanizer units; isobutane dehydrogenation, octane enhancement, and high purity isobutylene production facilities; refined products pipelines aggregating approximately 3,300 miles, terminals, and associated marketing activities; ethylene export terminal and related operations; and marine transportation. The company was founded in 1968 and is headquartered in Houston, Texas.
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