Analyzing Western Gas Partners (WES) & Southcross Energy Partners (SXE)
Western Gas Partners (NYSE: SXE) and Southcross Energy Partners (NYSE:SXE) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Risk and Volatility
Western Gas Partners has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Southcross Energy Partners has a beta of 3.98, indicating that its share price is 298% more volatile than the S&P 500.
59.7% of Western Gas Partners shares are owned by institutional investors. Comparatively, 36.5% of Southcross Energy Partners shares are owned by institutional investors. 0.0% of Western Gas Partners shares are owned by insiders. Comparatively, 23.8% of Southcross Energy Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Western Gas Partners and Southcross Energy Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western Gas Partners||$2.25 billion||3.52||$567.48 million||$1.30||39.85|
|Southcross Energy Partners||$665.95 million||0.07||-$67.59 million||N/A||N/A|
Western Gas Partners has higher revenue and earnings than Southcross Energy Partners.
This table compares Western Gas Partners and Southcross Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Gas Partners||22.80%||12.18%||5.68%|
|Southcross Energy Partners||-11.18%||-14.49%||-6.51%|
Western Gas Partners pays an annual dividend of $3.80 per share and has a dividend yield of 7.3%. Southcross Energy Partners does not pay a dividend. Western Gas Partners pays out 292.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Gas Partners has increased its dividend for 10 consecutive years and Southcross Energy Partners has increased its dividend for 4 consecutive years.
This is a breakdown of recent recommendations and price targets for Western Gas Partners and Southcross Energy Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Gas Partners||0||6||6||0||2.50|
|Southcross Energy Partners||0||1||0||0||2.00|
Western Gas Partners currently has a consensus price target of $54.58, suggesting a potential upside of 5.35%. Given Western Gas Partners’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Western Gas Partners is more favorable than Southcross Energy Partners.
Western Gas Partners beats Southcross Energy Partners on 12 of the 15 factors compared between the two stocks.
Western Gas Partners Company Profile
Western Gas Partners, LP acquires, develops, owns, and operates midstream energy assets in the Rocky Mountains, North-central Pennsylvania, and Texas. It is involved in gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids, and crude oil. Western Gas Holdings, LLC serves as the general partner of Western Gas Partners, LP. The company was founded in 2007 and is headquartered in The Woodlands, Texas. Western Gas Partners LP is a subsidiary of Anadarko Petroleum Corporation.
Southcross Energy Partners Company Profile
Southcross Energy Partners, L.P., together with its subsidiaries, provides natural gas gathering, processing, treating, compression, and transportation services in the United States. The company also offers natural gas liquid (NGL) fractionation and transportation services. In addition, it supplies natural gas to industrial, commercial, and power generation customers, as well as local distribution companies. The company operates 2 gas processing plants, 1 fractionation plant, and gathering and transportation pipelines in South Texas, Mississippi, and Alabama. Southcross Energy Partners GP, LLC operates as a general partner of Southcross Energy Partners, L.P. The company was founded in 2009 and is headquartered in Dallas, Texas. Southcross Energy Partners, L.P. is a subsidiary of Southcross Holdings LP.
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