American Midstream Partners, (AMID) vs. Hess Corporation (HES) Critical Analysis
American Midstream Partners, (NYSE: AMID) and Hess Corporation (NYSE:HES) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 12.4%. Hess Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. American Midstream Partners, pays out -87.3% of its earnings in the form of a dividend. Hess Corporation pays out -5.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
American Midstream Partners, has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Hess Corporation has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for American Midstream Partners, and Hess Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Midstream Partners,||0||1||2||0||2.67|
American Midstream Partners, presently has a consensus price target of $16.50, indicating a potential upside of 24.06%. Hess Corporation has a consensus price target of $52.13, indicating a potential upside of 17.15%. Given American Midstream Partners,’s stronger consensus rating and higher probable upside, equities research analysts plainly believe American Midstream Partners, is more favorable than Hess Corporation.
This table compares American Midstream Partners, and Hess Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Midstream Partners,||-10.35%||-19.39%||-3.16%|
Institutional and Insider Ownership
42.1% of American Midstream Partners, shares are held by institutional investors. Comparatively, 87.2% of Hess Corporation shares are held by institutional investors. 5.4% of American Midstream Partners, shares are held by company insiders. Comparatively, 11.8% of Hess Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares American Midstream Partners, and Hess Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Midstream Partners,||$296.02 million||2.37||$12.92 million||($1.89)||-7.04|
|Hess Corporation||$4.94 billion||2.83||$1.45 billion||($19.30)||-2.31|
Hess Corporation has higher revenue and earnings than American Midstream Partners,. American Midstream Partners, is trading at a lower price-to-earnings ratio than Hess Corporation, indicating that it is currently the more affordable of the two stocks.
Hess Corporation beats American Midstream Partners, on 8 of the 15 factors compared between the two stocks.
About American Midstream Partners,
American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.
About Hess Corporation
Hess Corporation is an exploration and production company. The Company is engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids (NGL) and natural gas. The Company’s segments include Exploration and Production, and Bakken Midstream. Its Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, NGLs and natural gas with production operations primarily in the United States, Denmark, Equatorial Guinea, the Malaysia/Thailand Joint Development Area (JDA), Malaysia and Norway. The Bakken Midstream segment provides fee-based services, including crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and NGLs, and the storage and terminaling of propane, primarily in the Bakken shale play of North Dakota.
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