Comparing SandRidge Mississippian Trust II (SDR) & EQT GP Holdings, (EQGP)
SandRidge Mississippian Trust II (NYSE: SDR) and EQT GP Holdings, (NYSE:EQGP) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.
Valuation and Earnings
This table compares SandRidge Mississippian Trust II and EQT GP Holdings,’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|SandRidge Mississippian Trust II||$20.41 million||3.02||$16.09 million||$0.24||5.17|
|EQT GP Holdings,||$735.61 million||9.45||$234.17 million||$0.94||27.79|
EQT GP Holdings, has higher revenue and earnings than SandRidge Mississippian Trust II. SandRidge Mississippian Trust II is trading at a lower price-to-earnings ratio than EQT GP Holdings,, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
SandRidge Mississippian Trust II has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, EQT GP Holdings, has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
This table compares SandRidge Mississippian Trust II and EQT GP Holdings,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SandRidge Mississippian Trust II||74.18%||17.64%||17.64%|
|EQT GP Holdings,||30.98%||12.14%||7.78%|
SandRidge Mississippian Trust II pays an annual dividend of $0.21 per share and has a dividend yield of 16.9%. EQT GP Holdings, pays an annual dividend of $0.91 per share and has a dividend yield of 3.5%. SandRidge Mississippian Trust II pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT GP Holdings, pays out 96.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SandRidge Mississippian Trust II is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
0.8% of SandRidge Mississippian Trust II shares are held by institutional investors. Comparatively, 10.2% of EQT GP Holdings, shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for SandRidge Mississippian Trust II and EQT GP Holdings,, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SandRidge Mississippian Trust II||0||0||0||0||N/A|
|EQT GP Holdings,||0||3||5||0||2.63|
EQT GP Holdings, has a consensus target price of $32.86, indicating a potential upside of 25.79%. Given EQT GP Holdings,’s higher probable upside, analysts plainly believe EQT GP Holdings, is more favorable than SandRidge Mississippian Trust II.
EQT GP Holdings, beats SandRidge Mississippian Trust II on 9 of the 14 factors compared between the two stocks.
SandRidge Mississippian Trust II Company Profile
SandRidge Mississippian Trust II is a statutory trust. The royalty interests conveyed by SandRidge Energy, Inc. (SandRidge) from its interests in certain properties in the Mississippian formation in northern Oklahoma and southern Kansas and held by the Trust are referred to as the Royalty Interests. The Trust holds Royalty Interests in specified oil and natural gas properties. The Royalty Interests entitle the Trust to receive approximately 80% of the proceeds from the sale of oil, natural gas and natural gas liquids (NGLs) production attributable to SandRidge’s net revenue interest in approximately 50 wells producing and over 10 additional wells awaiting (together, the Initial Wells), and over 70% of the proceeds from the sale of oil, natural gas and NGL production attributable to SandRidge’s net revenue interest in approximately 200 horizontal oil and natural gas development wells drilled (the Trust Development Wells) within an area of mutual interest (AMI).
EQT GP Holdings, Company Profile
EQT GP Holdings, LP (EQGP) is a limited partnership company and subsidiary of EQT Gathering Holdings, LLC (EQT Gathering Holdings). The Company was formed to own EQT Corporation’s (EQT’s) partnership interests in EQT Midstream Partners, LP (EQM), a limited partnership formed by EQT to own, operate, acquire and develop midstream assets in the Appalachian Basin. Its segments include Gathering, and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. The Transmission segment includes EQM’s FERC-regulated interstate pipeline and storage business. EQGP has no independent operations. It has partnership interests in EQM. As of December 31, 2016, EQM provided midstream services to EQT and various third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two primary assets: the gathering system, and the transmission and storage system.
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