Contrasting Shell Midstream Partners, L.P. (SHLX) & Crestwood Midstream Partners (CMLP)
Shell Midstream Partners, L.P. (NYSE: SHLX) and Crestwood Midstream Partners (NYSE:CMLP) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.
Earnings & Valuation
This table compares Shell Midstream Partners, L.P. and Crestwood Midstream Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Shell Midstream Partners, L.P.||$283.50 million||17.58||$160.60 million||$1.24||22.65|
|Crestwood Midstream Partners||N/A||N/A||N/A||N/A||N/A|
Shell Midstream Partners, L.P. has higher revenue and earnings than Crestwood Midstream Partners.
This is a breakdown of recent recommendations for Shell Midstream Partners, L.P. and Crestwood Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Shell Midstream Partners, L.P.||0||1||4||0||2.80|
|Crestwood Midstream Partners||0||0||0||0||N/A|
Shell Midstream Partners, L.P. currently has a consensus target price of $34.80, indicating a potential upside of 23.89%. Given Shell Midstream Partners, L.P.’s higher possible upside, equities research analysts plainly believe Shell Midstream Partners, L.P. is more favorable than Crestwood Midstream Partners.
Insider & Institutional Ownership
43.8% of Shell Midstream Partners, L.P. shares are held by institutional investors. 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.
Shell Midstream Partners, L.P. pays an annual dividend of $1.22 per share and has a dividend yield of 4.3%. Crestwood Midstream Partners does not pay a dividend. Shell Midstream Partners, L.P. pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Shell Midstream Partners, L.P. and Crestwood Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Shell Midstream Partners, L.P.||87.22%||258.67%||28.64%|
|Crestwood Midstream Partners||-0.22%||-1.34%||-0.17%|
Shell Midstream Partners, L.P. beats Crestwood Midstream Partners on 8 of the 9 factors compared between the two stocks.
About Shell Midstream Partners, L.P.
Shell Midstream Partners, L.P. is a master limited partnership company, which owns, operates, develops and acquires pipelines and other midstream assets. The Company conducts its operations through its subsidiary, Shell Midstream Operating, LLC. Its assets consist of interests in entities that own crude oil and refined products pipelines serving as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from those markets to demand centers. As of December 31, 2016, it owned interests in seven crude oil pipeline systems, three refined products systems, one natural gas gathering pipeline system and a crude tank storage and terminal system. Its pipeline and terminal systems include Zydeco crude oil system, Auger crude oil system, Mars crude oil system, Bengal product system, Poseidon crude oil system, Odyssey crude oil system, Proteus crude oil system and Endymion crude oil system.
About Crestwood Midstream Partners
Crestwood Midstream Partners LP (Crestwood) develops, acquires, owns and operates primarily fee-based assets and operations within the energy midstream sector. The Company has three reporting segments: gathering and processing (G&P), providing natural gas gathering, processing, treating and compression services to producers in multiple unconventional shale plays; storage and transportation, which owns and operates natural gas storage facilities, and NGL and crude services, including crude oil rail terminals, the Arrow gathering system, its fleet of over-the-road crude oil and produced water transportation assets, an NGL storage facility, and US Salt, LLC. It provides infrastructure solutions across the value chain to service liquids-rich and crude oil shale plays across the United States. It owns and operates a portfolio of crude oil and natural gas gathering, processing, storage and transportation assets that connect fundamental energy supply with energy demand across North America.
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