Crestwood Midstream Partners (CMLP) versus Penntex Midstream Partners (PTXP) Financial Analysis
Crestwood Midstream Partners (NYSE: CMLP) and Penntex Midstream Partners (NASDAQ:PTXP) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Penntex Midstream Partners pays an annual dividend of $1.18 per share and has a dividend yield of 5.9%. Crestwood Midstream Partners does not pay a dividend. Penntex Midstream Partners pays out 453.8% 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 is a summary of current recommendations for Crestwood Midstream Partners and Penntex Midstream Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crestwood Midstream Partners||0||0||0||0||N/A|
|Penntex Midstream Partners||0||6||0||0||2.00|
Penntex Midstream Partners has a consensus price target of $19.17, suggesting a potential downside of 4.17%. Given Penntex Midstream Partners’ higher possible upside, analysts clearly believe Penntex Midstream Partners is more favorable than Crestwood Midstream Partners.
Institutional and Insider Ownership
55.0% of Penntex Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Crestwood Midstream Partners and Penntex Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crestwood Midstream Partners||-0.22%||-1.34%||-0.17%|
|Penntex Midstream Partners||34.54%||11.00%||5.81%|
Earnings and Valuation
This table compares Crestwood Midstream Partners and Penntex Midstream Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Crestwood Midstream Partners||N/A||N/A||N/A||($0.76)||-8.13|
|Penntex Midstream Partners||N/A||N/A||N/A||$0.26||76.92|
Crestwood Midstream Partners is trading at a lower price-to-earnings ratio than Penntex Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Penntex Midstream Partners beats Crestwood Midstream Partners on 7 of the 8 factors compared between the two stocks.
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.
About Penntex Midstream Partners
PennTex Midstream Partners, LP, focuses on owning, operating, acquiring and developing midstream energy infrastructure assets in North America. The Company owns and operates midstream gathering, processing and transportation assets in northern Louisiana. The Company provides natural gas gathering and processing and residue gas and natural gas liquid (NGL) transportation services to producers focused on the Cotton Valley formation in northern Louisiana. The Company’s assets primarily consisted of natural gas gathering pipeline, two 200 million cubic feet per day (MMcf/d) design-capacity cryogenic natural gas processing plants, and residue gas and NGL transportation pipelines, as of December 31, 2016. In addition to providing midstream services to its primary customer with its existing assets, the Company pursues other opportunities for organic development and growth as producers in its region continue to develop their acreage.
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