Analyzing ENERGY TRANSFER/UT LTD PARTN INT (ET) and EnLink Midstream (ENLC)
ENERGY TRANSFER/UT LTD PARTN INT (NYSE:ET) and EnLink Midstream (NYSE:ENLC) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.
ENERGY TRANSFER/UT LTD PARTN INT pays an annual dividend of $1.22 per share and has a dividend yield of 8.6%. EnLink Midstream pays an annual dividend of $1.08 per share and has a dividend yield of 9.1%. ENERGY TRANSFER/UT LTD PARTN INT pays out 100.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream pays out -2,160.0% of its earnings in the form of a dividend. EnLink Midstream is clearly the better dividend stock, given its higher yield and lower payout ratio.
ENERGY TRANSFER/UT LTD PARTN INT has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, EnLink Midstream has a beta of 2.3, suggesting that its stock price is 130% more volatile than the S&P 500.
This is a summary of current recommendations for ENERGY TRANSFER/UT LTD PARTN INT and EnLink Midstream, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ENERGY TRANSFER/UT LTD PARTN INT||0||0||3||0||3.00|
ENERGY TRANSFER/UT LTD PARTN INT currently has a consensus price target of $20.50, indicating a potential upside of 43.76%. EnLink Midstream has a consensus price target of $17.54, indicating a potential upside of 48.38%. Given EnLink Midstream’s higher possible upside, analysts plainly believe EnLink Midstream is more favorable than ENERGY TRANSFER/UT LTD PARTN INT.
Earnings & Valuation
This table compares ENERGY TRANSFER/UT LTD PARTN INT and EnLink Midstream’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ENERGY TRANSFER/UT LTD PARTN INT||$40.52 billion||0.41||$915.00 million||$1.21||11.79|
|EnLink Midstream||$5.74 billion||0.37||$212.80 million||($0.05)||-236.40|
ENERGY TRANSFER/UT LTD PARTN INT has higher revenue and earnings than EnLink Midstream. EnLink Midstream is trading at a lower price-to-earnings ratio than ENERGY TRANSFER/UT LTD PARTN INT, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
47.0% of ENERGY TRANSFER/UT LTD PARTN INT shares are held by institutional investors. Comparatively, 32.2% of EnLink Midstream shares are held by institutional investors. 3.3% of ENERGY TRANSFER/UT LTD PARTN INT shares are held by company insiders. Comparatively, 1.2% of EnLink Midstream 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.
This table compares ENERGY TRANSFER/UT LTD PARTN INT and EnLink Midstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ENERGY TRANSFER/UT LTD PARTN INT||2.58%||5.68%||1.98%|
ENERGY TRANSFER/UT LTD PARTN INT beats EnLink Midstream on 10 of the 16 factors compared between the two stocks.
About ENERGY TRANSFER/UT LTD PARTN INT
Energy Transfer LP provides diversified energy-related services in the United States. It owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and approximately 11,800 miles of interstate natural gas pipelines. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. It owns and operates natural gas and natural gas liquid (NGL) gathering pipelines, as well as natural gas processing plants, treating facilities, and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; a natural gas gathering system in Ohio; and transportation and supply of water to natural gas producers in Pennsylvania. The company also owns approximately 4,300 miles of NGL pipelines, 5 NGL and propane fractionation facilities, and NGL storage facilities with aggregate working storage capacity of approximately 53 million barrels. It also sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. The company provides natural gas compression services; treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates a total of 75 megawatts electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. The company was founded in 2002 and is based in Dallas, Texas.
About EnLink Midstream
EnLink Midstream, LLC focuses on providing midstream energy services in the United States. It operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The company is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, exporting, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, and trans-loading crude oil, and condensate. Its midstream energy asset network includes approximately 11,000 miles of pipelines; 20 natural gas processing plants; 7 fractionators; barge and rail terminals; product storage facilities; brine disposal wells; and a crude oil trucking fleet. The company was founded in 2013 and is headquartered in Dallas, Texas. EnLink Midstream, LLC operates as a former subsidiary of Devon Energy Corporation.
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