DCP Midstream Partners, (NYSE: DCP) and Cone Midstream Partners (NYSE:CNNX) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Valuation and Earnings

This table compares DCP Midstream Partners, and Cone Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
DCP Midstream Partners, $1.50 billion 3.22 $312.00 million $0.71 47.34
Cone Midstream Partners $239.21 million 2.45 $96.48 million $1.70 10.00

DCP Midstream Partners, has higher revenue and earnings than Cone Midstream Partners. Cone Midstream Partners is trading at a lower price-to-earnings ratio than DCP Midstream Partners,, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

55.9% of DCP Midstream Partners, shares are held by institutional investors. Comparatively, 35.4% of Cone Midstream Partners shares are held by institutional investors. 0.0% of DCP Midstream Partners, shares are held by company insiders. 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.

Volatility & Risk

DCP Midstream Partners, has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Cone Midstream Partners has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Profitability

This table compares DCP Midstream Partners, and Cone Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DCP Midstream Partners, 3.74% 4.47% 2.34%
Cone Midstream Partners 48.40% 15.22% 12.15%

Analyst Ratings

This is a summary of recent recommendations for DCP Midstream Partners, and Cone Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DCP Midstream Partners, 1 6 4 0 2.27
Cone Midstream Partners 0 4 4 0 2.50

DCP Midstream Partners, currently has a consensus target price of $38.10, suggesting a potential upside of 13.36%. Cone Midstream Partners has a consensus target price of $23.29, suggesting a potential upside of 36.97%. Given Cone Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Cone Midstream Partners is more favorable than DCP Midstream Partners,.

Dividends

DCP Midstream Partners, pays an annual dividend of $3.12 per share and has a dividend yield of 9.3%. Cone Midstream Partners pays an annual dividend of $1.21 per share and has a dividend yield of 7.1%. DCP Midstream Partners, pays out 439.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cone Midstream Partners pays out 71.2% of its earnings in the form of a dividend.

Summary

DCP Midstream Partners, beats Cone Midstream Partners on 8 of the 15 factors compared between the two stocks.

DCP Midstream Partners, Company Profile

DCP Midstream, LP, formerly DCP Midstream Partners, LP, is a producer and marketer of natural gas liquids (NGLs) in the United States. The Company is engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and recovering, and selling condensate, and transporting, storing and selling propane in wholesale markets. Its segments include Natural Gas Services, NGL Logistics and Wholesale Propane Logistics. The Natural Gas Services segment consists of various assets and ownership interests that provide a range of wellhead to market services for its producer customers. It owns and operates assets for its NGL Logistics business in the states of Colorado, Kansas, Louisiana, Michigan, Oklahoma and Texas. DCP Midstream LP operates as a 50/50 joint venture between Phillips 66 and Spectra Energy Corp., which is ultimately owned by Enbridge Inc.

Cone Midstream Partners Company Profile

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. Its Additional Systems include various gathering systems located in the wet gas regions of its dedicated acreage.

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