Cone Midstream Partners (NYSE: CNNX) and TC PipeLines, (NYSE:TCP) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Valuation and Earnings

This table compares Cone Midstream Partners and TC PipeLines,’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cone Midstream Partners $234.05 million 4.86 $150.90 million $1.67 10.72
TC PipeLines, $481.00 million 7.54 $399.00 million $3.13 16.69

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

Profitability

This table compares Cone Midstream Partners and TC PipeLines,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cone Midstream Partners 45.95% 14.15% 11.74%
TC PipeLines, 62.63% 19.77% 7.16%

Risk and Volatility

Cone Midstream Partners has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, TC PipeLines, has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Dividends

Cone Midstream Partners pays an annual dividend of $1.17 per share and has a dividend yield of 6.5%. TC PipeLines, pays an annual dividend of $4.00 per share and has a dividend yield of 7.7%. Cone Midstream Partners pays out 70.1% of its earnings in the form of a dividend. TC PipeLines, pays out 127.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cone Midstream Partners has increased its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for Cone Midstream Partners and TC PipeLines,, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cone Midstream Partners 0 4 4 0 2.50
TC PipeLines, 1 3 1 0 2.00

Cone Midstream Partners presently has a consensus price target of $23.17, suggesting a potential upside of 29.42%. TC PipeLines, has a consensus price target of $62.75, suggesting a potential upside of 20.10%. Given Cone Midstream Partners’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Cone Midstream Partners is more favorable than TC PipeLines,.

Institutional & Insider Ownership

37.0% of Cone Midstream Partners shares are owned by institutional investors. Comparatively, 60.6% of TC PipeLines, shares are owned by institutional investors. 0.1% of TC PipeLines, shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

TC PipeLines, beats Cone Midstream Partners on 10 of the 17 factors compared between the two stocks.

Cone Midstream Partners Company Profile

CONE Midstream Partners LP is a master limited partnership formed by CONSOL Energy Inc. (CONSOL) and Noble Energy, Inc. (Noble Energy). The Company owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service CONSOL’s and Noble Energy’s production in the Marcellus Shale in Pennsylvania and West Virginia. Its assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. It operates through three segments: Anchor Systems, Growth Systems and Additional Systems. Its Anchor Systems include developed midstream systems, including its three midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. Its Growth Systems are located in the dry gas regions of its dedicated acreage. Its Additional Systems include various gathering systems located in the wet gas regions of its dedicated acreage.

TC PipeLines, Company Profile

TC PipeLines, LP is a master limited partnership. The Company acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company’s pipeline systems transport natural gas in the United States. As of December 31, 2016, the Company had four pipelines and equity ownership interests in three natural gas interstate pipeline systems that are collectively designed to transport approximately 9.1 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern and Eastern United States. The Company’s pipeline systems include Gas Transmission Northwest LLC (GTN), Bison Pipeline LLC (Bison), North Baja Pipeline, LLC (North Baja), Tuscarora Gas Transmission Company (Tuscarora), Northern Border Pipeline Company (Northern Border), Portland Natural Gas Transmission System (PNGTS), and Great Lakes Gas Transmission Limited Partnership (Great Lakes).

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