Antero Midstream GP (NASDAQ: AMGP) and CSI Compressco (NASDAQ:CCLP) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

28.7% of CSI Compressco shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Antero Midstream GP and CSI Compressco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Antero Midstream GP N/A -77.88% -46.99%
CSI Compressco -17.01% -36.43% -6.45%

Valuation and Earnings

This table compares Antero Midstream GP and CSI Compressco’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Antero Midstream GP $39.24 million 92.52 N/A N/A N/A
CSI Compressco $294.45 million 0.57 $67.78 million ($1.50) -3.13

CSI Compressco has higher revenue and earnings than Antero Midstream GP.

Dividends

CSI Compressco pays an annual dividend of $0.75 per share and has a dividend yield of 16.0%. Antero Midstream GP does not pay a dividend. CSI Compressco pays out -50.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Antero Midstream GP and CSI Compressco, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Midstream GP 0 4 10 1 2.80
CSI Compressco 1 3 1 0 2.00

Antero Midstream GP presently has a consensus target price of $26.33, suggesting a potential upside of 35.04%. CSI Compressco has a consensus target price of $7.50, suggesting a potential upside of 59.57%. Given CSI Compressco’s higher possible upside, analysts clearly believe CSI Compressco is more favorable than Antero Midstream GP.

Summary

CSI Compressco beats Antero Midstream GP on 7 of the 12 factors compared between the two stocks.

Antero Midstream GP Company Profile

Antero Midstream GP LP, formerly Antero Resources Midstream Management LLC, owns, operates and develops midstream energy infrastructure. The Company’s segments include gathering and processing and water handling and treatment. The gathering and processing segment consist of long-term, fee-based activities including low-pressure gathering, compression, high-pressure gathering, processing, fractionation, and condensate gathering. The Company’s water handling and treatment segment consists of long-term fee based activities including fresh water delivery used in completion activity, and water handling services. The Company’s assets are located both in the southwestern core of the Marcellus Shale in northwest West Virginia and in the core of the Utica Shale in southern Ohio.

CSI Compressco Company Profile

CSI Compressco LP is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Company sells custom-designed compressor packages and oilfield fluid pump systems, and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. It provides these compression services and equipment to a base of natural gas and oil exploration and production, midstream and transmission companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. It is a service provider of natural gas compression services in the United States, utilizing its fleet of compressor packages that employs a spectrum of low-, medium- and high-horsepower engines. As of December 31, 2016, its fleet included approximately 6,000 compressor packages.

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