Hess Midstream Partners (NYSE: HESM) and Navigator (NYSE:NVGS) are both small-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Hess Midstream Partners and Navigator, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hess Midstream Partners 0 0 6 0 3.00
Navigator 1 0 3 0 2.50

Hess Midstream Partners presently has a consensus price target of $28.33, suggesting a potential upside of 33.02%. Navigator has a consensus price target of $13.38, suggesting a potential upside of 25.00%. Given Hess Midstream Partners’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Hess Midstream Partners is more favorable than Navigator.

Dividends

Hess Midstream Partners pays an annual dividend of $1.24 per share and has a dividend yield of 5.8%. Navigator does not pay a dividend.

Earnings & Valuation

This table compares Hess Midstream Partners and Navigator’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hess Midstream Partners $509.80 million 1.14 $206.30 million N/A N/A
Navigator $294.11 million 2.02 $44.63 million $0.21 50.95

Hess Midstream Partners has higher revenue and earnings than Navigator.

Institutional & Insider Ownership

57.2% of Hess Midstream Partners shares are owned by institutional investors. Comparatively, 69.1% of Navigator shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Hess Midstream Partners 28.19% 6.64% 6.15%
Navigator 3.88% 1.49% 0.80%

Summary

Hess Midstream Partners beats Navigator on 9 of the 11 factors compared between the two stocks.

About Hess Midstream Partners

Hess Midstream Partners LP is a fee-based, traditional master limited partnership formed to own, operate, develop and acquire a set of midstream assets to provide services to Hess and third-party crude oil and natural gas producers. The Company’s assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota (collectively referred as the Bakken). It operates its business through three segments: gathering; processing and storage; and terminaling and export. The Company’s gathering business consisted of its 20% controlling economic interest in Gathering Opco, which owns North Dakota natural gas, natural gas liquids and crude oil gathering systems. The Company’s processing and storage business consisted of its 20% controlling economic interest in the Tioga Gas Plant and its 100% interest in the Mentor Storage Terminal. The Company’s terminaling and export business consisted of its 20% controlling economic interest in Logistics Opco.

About Navigator

Navigator Holdings Ltd. is an owner and operator of a fleet of handysize liquefied gas carriers. The Company provides international and regional seaborne transportation services of liquefied petroleum gas (LPG), petrochemical gases and ammonia. As of December 31, 2016, it had 33 semi- or fully-refrigerated handysize liquefied gas carriers. Its handysize liquefied gas carriers are liquefied gas carriers with capabilities between 15,000 and 24,999 cubic meter (cbm). Its handysize liquefied gas carriers can accommodate medium- and long-haul routes. In addition, it had four midsize 37,300 cbm ethylene-capable semi-refrigerated liquefied gas carriers as of December 31, 2016. Its midsize ethylene-capable semi-refrigerated gas carriers enable long-haul transportation of ethane/ethylene. As of December 31, 2016, it also had one 38,000 cbm fully refrigerated gas carrier. The Company carries LPG for international energy companies, state-owned utilities and commodities traders.

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