PAA Natural Gas Storage (NYSE: PNG) and Rice Midstream Partners (NYSE:RMP) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Valuation & Earnings

This table compares PAA Natural Gas Storage and Rice Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PAA Natural Gas Storage N/A N/A N/A $0.92 N/A
Rice Midstream Partners $201.62 million 7.92 $121.61 million $1.72 12.62

Rice Midstream Partners has higher revenue and earnings than PAA Natural Gas Storage. PAA Natural Gas Storage is trading at a lower price-to-earnings ratio than Rice Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Rice Midstream Partners pays an annual dividend of $1.13 per share and has a dividend yield of 5.2%. PAA Natural Gas Storage does not pay a dividend. Rice Midstream Partners pays out 65.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for PAA Natural Gas Storage and Rice Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PAA Natural Gas Storage 0 0 0 0 N/A
Rice Midstream Partners 0 12 3 0 2.20

Rice Midstream Partners has a consensus price target of $21.43, suggesting a potential downside of 1.25%.

Profitability

This table compares PAA Natural Gas Storage and Rice Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PAA Natural Gas Storage N/A N/A N/A
Rice Midstream Partners 59.24% 13.59% 11.34%

Summary

Rice Midstream Partners beats PAA Natural Gas Storage on 7 of the 8 factors compared between the two stocks.

PAA Natural Gas Storage Company Profile

PAA Natural Gas Storage, L.P. is engaged in the business of acquisition, development, ownership, operation and commercial management of natural gas storage facilities. As of December 31, 2012, the Company owned and operated three natural gas storage facilities located in Louisiana, Mississippi and Michigan. The Company also leases storage capacity and pipelines transportation capacity from third parties. The Company provides natural gas storage services to a mix of customers, including local gas distribution company’s liquefied natural gas (LNG), electric utilities, pipelines, direct industrial users, electric power generators, marketers, producers, LNG exporters and affiliates of such entities. In December 31, 2013, Plains All American Pipeline, L.P. (Plains) completed the merger of PAA Natural Gas Storage, L.P with a wholly owned subsidiary of Plains, with Plains surviving the merger as a wholly owned subsidiary of PAA.

Rice Midstream Partners Company Profile

Rice Midstream Partners LP owns, operates, develops and acquires midstream assets in the Appalachian Basin. The Company’s segments are gathering and compression, and water services. The gathering and compression segment provides natural gas gathering and compression services for Rice Energy Inc. (Rice Energy) and third parties in the Appalachian Basin. The water services segment provides water services to support well completion activities, and to collect and recycle or dispose of flowback and produced water for Rice Energy and third parties in the Appalachian Basin. Its gas gathering and compression assets are located within the dry gas core of the Marcellus Shale and, consists of approximately 3.3 million dekatherms per day (MMDth/d) high-pressure dry gas gathering system and associated compression in Washington County, Pennsylvania, and an approximately 840 thousand dekatherms per day (MDth/d) high-pressure dry gas gathering system in Greene County, Pennsylvania.

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