Analyzing CNX Midstream Partners (CNXM) & Oneok Partners (OKS)
CNX Midstream Partners (NYSE: CNXM) and Oneok Partners (NYSE:OKS) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
CNX Midstream Partners pays an annual dividend of $1.25 per share and has a dividend yield of 6.6%. Oneok Partners pays an annual dividend of $3.16 per share and has a dividend yield of 6.2%. CNX Midstream Partners pays out 72.7% of its earnings in the form of a dividend. Oneok Partners pays out 137.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CNX Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares CNX Midstream Partners and Oneok Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CNX Midstream Partners||$233.85 million||5.16||$114.99 million||$1.72||11.02|
CNX Midstream Partners has higher revenue and earnings than Oneok Partners. CNX Midstream Partners is trading at a lower price-to-earnings ratio than Oneok Partners, indicating that it is currently the more affordable of the two stocks.
This table compares CNX Midstream Partners and Oneok Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CNX Midstream Partners||48.53%||15.38%||12.36%|
Risk & Volatility
CNX Midstream Partners has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Oneok Partners has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
This is a summary of recent ratings for CNX Midstream Partners and Oneok Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CNX Midstream Partners||0||4||5||0||2.56|
CNX Midstream Partners presently has a consensus price target of $22.43, indicating a potential upside of 18.29%. Oneok Partners has a consensus price target of $53.25, indicating a potential upside of 4.27%. Given CNX Midstream Partners’ stronger consensus rating and higher probable upside, research analysts clearly believe CNX Midstream Partners is more favorable than Oneok Partners.
Insider & Institutional Ownership
20.4% of CNX Midstream Partners shares are held by institutional investors. Comparatively, 41.2% of Oneok Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
CNX Midstream Partners beats Oneok Partners on 10 of the 13 factors compared between the two stocks.
About CNX Midstream Partners
CNX Midstream Partners LP, formerly CONE Midstream Partners LP, is a master limited partnership formed by CONSOL Energy Inc. (CONSOL) and Noble Energy, Inc. (Noble Energy). The Company owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service CONSOL’s and Noble Energy’s production in the Marcellus Shale in Pennsylvania and West Virginia. Its assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. It operates through three segments: Anchor Systems, Growth Systems and Additional Systems. Its Anchor Systems include developed midstream systems, including its three midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. Its Growth Systems are located in the dry gas regions of its dedicated acreage.
About Oneok Partners
ONEOK Partners, L.P. is engaged in gathering, processing, storage and transportation of natural gas in the United States. In addition, the Company owns natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions. It operates through three segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. Its Natural Gas Liquids segment owned and operated facilities that gathered, fractionated, treated and distributed NGLs and store NGL products, in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region where it provided midstream services to producers of NGLs and delivered those products to the two primary market centers, one in the Mid-Continent in Conway, and the other in the Gulf Coast in Mont Belvieu, Texas, as of December 31, 2016.
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