Antero Midstream Partners (NYSE:AM) and Enable Midstream Partners (NYSE:ENBL) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Antero Midstream Partners and Enable Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Antero Midstream Partners $772.50 million 5.92 $307.31 million $1.40 17.45
Enable Midstream Partners $2.80 billion 2.32 $436.00 million $0.92 16.34

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Antero Midstream Partners and Enable Midstream Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Midstream Partners 0 7 4 0 2.36
Enable Midstream Partners 0 6 2 0 2.25

Antero Midstream Partners presently has a consensus price target of $33.83, indicating a potential upside of 38.49%. Enable Midstream Partners has a consensus price target of $18.29, indicating a potential upside of 21.66%. Given Antero Midstream Partners’ stronger consensus rating and higher probable upside, equities analysts plainly believe Antero Midstream Partners is more favorable than Enable Midstream Partners.

Institutional and Insider Ownership

50.1% of Antero Midstream Partners shares are owned by institutional investors. Comparatively, 19.6% of Enable Midstream Partners shares are owned by institutional investors. 7.9% of Antero Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Antero Midstream Partners and Enable Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Antero Midstream Partners 32.54% 21.74% 10.41%
Enable Midstream Partners 13.84% 6.28% 3.87%

Volatility and Risk

Antero Midstream Partners has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Enable Midstream Partners has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Dividends

Antero Midstream Partners pays an annual dividend of $1.88 per share and has a dividend yield of 7.7%. Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 8.4%. Antero Midstream Partners pays out 134.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners pays out 138.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Antero Midstream Partners has increased its dividend for 3 consecutive years.

Summary

Antero Midstream Partners beats Enable Midstream Partners on 14 of the 17 factors compared between the two stocks.

Antero Midstream Partners Company Profile

Antero Midstream Partners LP owns, operates, and develops midstream energy assets. The company operates in two segments, Gathering and Processing, and Water Handling and Treatment. Its assets include 8-, 12-, 16-, 20-, 24-, and 30-inch high and low pressure gathering pipelines, compressor stations, and processing and fractionation plants that collect and process natural gas, natural gas liquids, and crude oil from wells in the Marcellus Shale in West Virginia and the Utica Shale in Ohio; and water handling and treatment assets, which comprise two independent fresh water delivery systems that deliver fresh water from the Ohio River and several regional waterways, as well as wastewater handling services for well completion operations. As of December 31, 2017, the company's Marcellus and Utica Shale water handling and treatment systems included 190 miles and 83 miles of pipelines, respectively; and gathering systems comprised 242 miles and 123 miles of pipelines, respectively. Antero Midstream Partners GP LLC serves as the general partner of the company. The company was founded in 2013 and is headquartered in Denver, Colorado. Antero Midstream Partners LP is a subsidiary of Antero Resources Corporation.

Enable Midstream Partners Company Profile

Enable Midstream Partners, LP owns, operates, and develops midstream energy infrastructure assets in the United States. The company operates in two segments, Gathering and Processing; and Transportation and Storage. The Gathering and Processing segment provides natural gas gathering, processing, and fractionation services in the Anadarko, Arkoma, and Ark-La-Tex basins, as well as crude oil gathering services in the Bakken Shale formation of the Williston Basin for its producer customers. The Transportation and Storage segment offers interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, utilities, and industrial customers. The company's natural gas gathering and processing assets are located in Oklahoma, Texas, Arkansas, and Louisiana; crude oil gathering assets are located in North Dakota; and natural gas transportation and storage assets extend from western Oklahoma and the Texas Panhandle to Louisiana, from Louisiana to Illinois, in Oklahoma, and from Louisiana to Alabama. As of December 31, 2017, its portfolio of midstream energy infrastructure assets included approximately 13,300 miles of gathering pipelines; 15 processing plants with 2.6 billion cubic feet per day of processing capacity; approximately 7,800 miles of interstate pipelines; approximately 2,200 miles of intrastate pipelines; and 8 natural gas storage facilities with 86.0 billion cubic feet of storage capacity. The company is based in Oklahoma City, Oklahoma. Enable Midstream Partners, LP is a subsidiary of CenterPoint Energy, Inc.

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