Comparing Noble Midstream Partners (NBLX) and EnLink Midstream Partners (ENLK)
Noble Midstream Partners (NYSE: NBLX) and EnLink Midstream Partners (NYSE:ENLK) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Institutional and Insider Ownership
75.8% of Noble Midstream Partners shares are held by institutional investors. Comparatively, 41.7% of EnLink Midstream Partners shares are held by institutional investors. 0.2% of EnLink Midstream Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Noble Midstream Partners and EnLink Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Noble Midstream Partners||55.83%||36.74%||24.51%|
|EnLink Midstream Partners||0.76%||1.20%||0.53%|
Noble Midstream Partners pays an annual dividend of $1.87 per share and has a dividend yield of 3.3%. EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 8.8%. Noble Midstream Partners pays out 50.5% of its earnings in the form of a dividend. EnLink Midstream Partners pays out -678.2% 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. EnLink Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent recommendations and price targets for Noble Midstream Partners and EnLink Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Noble Midstream Partners||0||2||7||0||2.78|
|EnLink Midstream Partners||0||8||3||0||2.27|
Noble Midstream Partners currently has a consensus target price of $53.63, indicating a potential downside of 5.16%. EnLink Midstream Partners has a consensus target price of $17.90, indicating a potential upside of 1.19%. Given EnLink Midstream Partners’ higher probable upside, analysts plainly believe EnLink Midstream Partners is more favorable than Noble Midstream Partners.
Volatility and Risk
Noble Midstream Partners has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, EnLink Midstream Partners has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.
Earnings & Valuation
This table compares Noble Midstream Partners and EnLink Midstream Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Noble Midstream Partners||$160.72 million||8.17||$74.44 million||$3.70||15.28|
|EnLink Midstream Partners||$4.25 billion||1.45||-$565.20 million||($0.23)||-76.91|
Noble Midstream Partners has higher earnings, but lower revenue than EnLink Midstream Partners. EnLink Midstream Partners is trading at a lower price-to-earnings ratio than Noble Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Noble Midstream Partners beats EnLink Midstream Partners on 10 of the 16 factors compared between the two stocks.
About Noble Midstream Partners
Noble Midstream Partners LP is engaged in owning, operating, developing and acquiring a range of domestic midstream infrastructure assets. The Company’s areas of focus are in the area of Denver-Julesburg (DJ) Basin in Colorado and the Southern Delaware Basin position of the Permian Basin in Texas (Delaware Basin). Its segments include Gathering Systems, Fresh Water Delivery, and Investments in White Cliffs and Other. The Gathering Systems segment includes crude oil, natural gas and produced water gathering, as well as crude oil treating. It holds interest in White Cliffs Pipeline L.L.C. (the White Cliffs Interest). The Investments in White Cliffs and Other segment includes activity associated with the White Cliffs Interest. As of December 31, 2016, the White Cliffs Pipeline system consisted of two 527-mile crude oil pipelines that extended from the DJ Basin to the Cushing, Oklahoma. It provides crude oil, natural gas, and water-related midstream services for Noble Energy, Inc.
About EnLink Midstream Partners
EnLink Midstream Partners, LP is a midstream company. The Company’s business activities are conducted through its subsidiary, EnLink Midstream Operating, LP (the Operating Partnership) and the subsidiaries of the Operating Partnership. The Company operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Company focuses on providing midstream energy services, including gathering, processing, transmission, fractionation, storage, condensate stabilization, brine services and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate. As of December 31, 2016, its midstream energy asset network included approximately 11,000 miles of pipelines, 20 natural gas processing plants, seven fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain private midstream companies.
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