Noble Midstream Partners (NYSE: NBLX) and EnLink Midstream (NYSE:ENLC) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Dividends

Noble Midstream Partners pays an annual dividend of $1.87 per share and has a dividend yield of 3.9%. EnLink Midstream pays an annual dividend of $1.02 per share and has a dividend yield of 6.3%. Noble Midstream Partners pays out 50.5% of its earnings in the form of a dividend. EnLink Midstream pays out 3,401.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream has raised its dividend for 2 consecutive years. EnLink Midstream is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

88.0% of Noble Midstream Partners shares are held by institutional investors. Comparatively, 34.1% of EnLink Midstream shares are held by institutional investors. 1.2% of EnLink Midstream shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Noble Midstream Partners has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, EnLink Midstream has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Noble Midstream Partners and EnLink Midstream, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble Midstream Partners 0 2 6 0 2.75
EnLink Midstream 1 9 1 0 2.00

Noble Midstream Partners currently has a consensus price target of $51.86, indicating a potential upside of 8.17%. EnLink Midstream has a consensus price target of $18.80, indicating a potential upside of 16.77%. Given EnLink Midstream’s higher possible upside, analysts clearly believe EnLink Midstream is more favorable than Noble Midstream Partners.

Profitability

This table compares Noble Midstream Partners and EnLink Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble Midstream Partners 55.83% 36.74% 24.51%
EnLink Midstream 0.12% 0.15% 0.08%

Earnings and Valuation

This table compares Noble Midstream Partners and EnLink Midstream’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noble Midstream Partners $160.72 million 5.97 $74.44 million $3.70 12.96
EnLink Midstream $4.25 billion 0.68 -$460.00 million $0.03 536.85

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

Summary

Noble Midstream Partners beats EnLink Midstream on 10 of the 17 factors compared between the two stocks.

About Noble Midstream Partners

Noble Midstream Partners LP is engaged in owning, operating, developing and acquiring a range of domestic midstream infrastructure assets. The Company’s areas of focus are in the area of Denver-Julesburg (DJ) Basin in Colorado and the Southern Delaware Basin position of the Permian Basin in Texas (Delaware Basin). Its segments include Gathering Systems, Fresh Water Delivery, and Investments in White Cliffs and Other. The Gathering Systems segment includes crude oil, natural gas and produced water gathering, as well as crude oil treating. It holds interest in White Cliffs Pipeline L.L.C. (the White Cliffs Interest). The Investments in White Cliffs and Other segment includes activity associated with the White Cliffs Interest. As of December 31, 2016, the White Cliffs Pipeline system consisted of two 527-mile crude oil pipelines that extended from the DJ Basin to the Cushing, Oklahoma. It provides crude oil, natural gas, and water-related midstream services for Noble Energy, Inc.

About EnLink Midstream

EnLink Midstream, LLC is an integrated midstream company. The Company’s assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership’s segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.

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