Analyzing EnLink Midstream (ENLC) & Penntex Midstream Partners (PTXP)
EnLink Midstream (NYSE: ENLC) and Penntex Midstream Partners (NASDAQ:PTXP) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Institutional & Insider Ownership
33.8% of EnLink Midstream shares are owned by institutional investors. Comparatively, 55.0% of Penntex Midstream Partners shares are owned by institutional investors. 1.2% of EnLink Midstream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
EnLink Midstream pays an annual dividend of $1.02 per share and has a dividend yield of 6.1%. Penntex Midstream Partners pays an annual dividend of $1.18 per share and has a dividend yield of 5.9%. Penntex Midstream Partners pays out 472.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Penntex Midstream Partners has raised its dividend for 2 consecutive years.
This table compares EnLink Midstream and Penntex Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Penntex Midstream Partners||34.54%||11.00%||5.81%|
Volatility and Risk
EnLink Midstream has a beta of 2.58, indicating that its share price is 158% more volatile than the S&P 500. Comparatively, Penntex Midstream Partners has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Earnings and Valuation
This table compares EnLink Midstream and Penntex Midstream Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EnLink Midstream||$4.92 billion||0.62||$751.90 million||N/A||N/A|
|Penntex Midstream Partners||N/A||N/A||N/A||$0.25||79.96|
EnLink Midstream has higher revenue and earnings than Penntex Midstream Partners.
This is a breakdown of recent ratings and target prices for EnLink Midstream and Penntex Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Penntex Midstream Partners||0||6||1||0||2.14|
EnLink Midstream currently has a consensus price target of $18.30, suggesting a potential upside of 8.61%. Penntex Midstream Partners has a consensus price target of $19.17, suggesting a potential downside of 4.12%. Given EnLink Midstream’s higher probable upside, analysts clearly believe EnLink Midstream is more favorable than Penntex Midstream Partners.
Penntex Midstream Partners beats EnLink Midstream on 7 of the 13 factors compared between the two stocks.
About EnLink Midstream
EnLink Midstream, LLC is an integrated midstream company. The Company’s assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership’s segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.
About Penntex Midstream Partners
PennTex Midstream Partners, LP, focuses on owning, operating, acquiring and developing midstream energy infrastructure assets in North America. The Company owns and operates midstream gathering, processing and transportation assets in northern Louisiana. The Company provides natural gas gathering and processing and residue gas and natural gas liquid (NGL) transportation services to producers focused on the Cotton Valley formation in northern Louisiana. The Company’s assets primarily consisted of natural gas gathering pipeline, two 200 million cubic feet per day (MMcf/d) design-capacity cryogenic natural gas processing plants, and residue gas and NGL transportation pipelines, as of December 31, 2016. In addition to providing midstream services to its primary customer with its existing assets, the Company pursues other opportunities for organic development and growth as producers in its region continue to develop their acreage.
Receive News & Stock Ratings for EnLink Midstream LLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EnLink Midstream LLC and related stocks with our FREE daily email newsletter.