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

Earnings & Valuation

This table compares Antero Midstream and Rattler Midstream’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Antero Midstream $142.91 million 27.12 $66.60 million $0.33 23.17
Rattler Midstream N/A N/A N/A N/A N/A

Antero Midstream has higher revenue and earnings than Rattler Midstream.

Profitability

This table compares Antero Midstream and Rattler Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Antero Midstream 29.31% 10.52% 6.27%
Rattler Midstream N/A N/A N/A

Dividends

Antero Midstream pays an annual dividend of $1.23 per share and has a dividend yield of 16.1%. Rattler Midstream does not pay a dividend. Antero Midstream pays out 372.7% 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 has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Antero Midstream and Rattler Midstream, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Midstream 0 7 3 0 2.30
Rattler Midstream 0 4 11 0 2.73

Antero Midstream currently has a consensus price target of $17.44, suggesting a potential upside of 128.18%. Rattler Midstream has a consensus price target of $22.54, suggesting a potential upside of 18.28%. Given Antero Midstream’s higher probable upside, research analysts clearly believe Antero Midstream is more favorable than Rattler Midstream.

Insider and Institutional Ownership

55.7% of Antero Midstream shares are held by institutional investors. Comparatively, 29.0% of Rattler Midstream shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Antero Midstream beats Rattler Midstream on 8 of the 11 factors compared between the two stocks.

About Antero Midstream

Antero Midstream Corporation owns and operates midstream energy assets servicing rich gas production in North America. It owns and operates an integrated system of natural gas gathering pipelines, compression stations, processing and fractionation plants, and water handling and treatment assets in the Marcellus Shale and Utica Shale basins. The company was founded in 2013 and is based in Denver, Colorado.

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