Comparing DCP Midstream (DCP) & EnLink Midstream (ENLC)
DCP Midstream (NYSE:DCP) and EnLink Midstream (NYSE:ENLC) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
This is a summary of recent ratings and recommmendations for DCP Midstream and EnLink Midstream, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DCP Midstream pays an annual dividend of $3.12 per share and has a dividend yield of 8.9%. EnLink Midstream pays an annual dividend of $1.08 per share and has a dividend yield of 9.5%. DCP Midstream pays out 588.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.
This table compares DCP Midstream and EnLink Midstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares DCP Midstream and EnLink Midstream’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DCP Midstream||$8.46 billion||0.59||$229.00 million||$0.53||65.79|
|EnLink Midstream||$5.74 billion||0.36||$212.80 million||($0.05)||-228.20|
DCP Midstream has higher revenue and earnings than EnLink Midstream. EnLink Midstream is trading at a lower price-to-earnings ratio than DCP Midstream, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
55.4% of DCP Midstream shares are held by institutional investors. Comparatively, 32.1% of EnLink Midstream shares are held by institutional investors. 0.0% of DCP Midstream shares are held by insiders. Comparatively, 1.2% of EnLink Midstream shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
DCP Midstream has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, EnLink Midstream has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.
DCP Midstream beats EnLink Midstream on 10 of the 16 factors compared between the two stocks.
About DCP Midstream
DCP Midstream, LP, together with its subsidiaries, owns, operates, acquires, and develops a portfolio of midstream energy assets in the United States. The company operates in two segments, Gathering and Processing, and Logistics and Marketing. The Gathering and Processing segment is involved in gathering, compressing, treating, and processing natural gas; producing and fractionating natural gas liquids (NGLs); and recovering condensate. The Logistics and Marketing segment engages in transporting, trading, marketing, and storing natural gas and NGLs; fractionating NGLs; and wholesale propane logistics. As of February 13, 2018, it owned and operated approximately 60 plants and 63,000 miles of natural gas and NGLs pipelines with operations in 17 states. The company serves petrochemical and refining companies, and retail propane distributors. DCP Midstream GP, LP serves as the general partner of the company. The company was formerly known as DCP Midstream Partners, LP and changed its name to DCP Midstream, LP in January 2017. DCP Midstream, LP was founded in 2005 and is headquartered in Denver, Colorado.
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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