American Midstream Partners, (NYSE: AMID) and Cenovus Energy (NYSE:CVE) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares American Midstream Partners, and Cenovus Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Midstream Partners, $296.02 million 2.30 $12.92 million ($1.89) -6.83
Cenovus Energy $11.81 billion 0.84 $1.76 billion $1.80 4.51

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

Dividends

American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 12.8%. Cenovus Energy pays an annual dividend of $0.15 per share and has a dividend yield of 1.8%. American Midstream Partners, pays out -87.3% of its earnings in the form of a dividend. Cenovus Energy pays out 8.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for American Midstream Partners, and Cenovus Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Midstream Partners, 0 1 2 0 2.67
Cenovus Energy 2 5 7 0 2.36

American Midstream Partners, presently has a consensus target price of $16.50, suggesting a potential upside of 27.91%. Cenovus Energy has a consensus target price of $18.50, suggesting a potential upside of 127.83%. Given Cenovus Energy’s higher probable upside, analysts clearly believe Cenovus Energy is more favorable than American Midstream Partners,.

Risk & Volatility

American Midstream Partners, has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

42.2% of American Midstream Partners, shares are owned by institutional investors. Comparatively, 56.2% of Cenovus Energy shares are owned by institutional investors. 5.4% of American Midstream Partners, shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares American Midstream Partners, and Cenovus Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Midstream Partners, -10.35% -19.39% -3.16%
Cenovus Energy 17.89% 3.20% 1.46%

Summary

Cenovus Energy beats American Midstream Partners, on 9 of the 15 factors compared between the two stocks.

About American Midstream Partners,

American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.

About Cenovus Energy

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

Receive News & Stock Ratings for American Midstream Partners LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Midstream Partners LP and related stocks with our FREE daily email newsletter.