Critical Survey: Western Gas Partners, (WES) and Its Competitors
Western Gas Partners, (NYSE: WES) is one of 44 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it weigh in compared to its competitors? We will compare Western Gas Partners, to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.
Volatility and Risk
Western Gas Partners, has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Western Gas Partners,’s competitors have a beta of 1.36, meaning that their average share price is 36% more volatile than the S&P 500.
Earnings and Valuation
This table compares Western Gas Partners, and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Western Gas Partners,||$1.80 billion||$591.33 million||38.12|
|Western Gas Partners, Competitors||$40.28 billion||$687.43 million||251.50|
Western Gas Partners,’s competitors have higher revenue and earnings than Western Gas Partners,. Western Gas Partners, is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings for Western Gas Partners, and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Gas Partners,||1||4||7||0||2.50|
|Western Gas Partners, Competitors||380||1853||2464||112||2.48|
Western Gas Partners, presently has a consensus price target of $60.45, indicating a potential upside of 28.93%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 2.98%. Given Western Gas Partners,’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Western Gas Partners, is more favorable than its competitors.
Western Gas Partners, pays an annual dividend of $3.62 per share and has a dividend yield of 7.7%. Western Gas Partners, pays out 294.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.0% and pay out 435.2% of their earnings in the form of a dividend. Western Gas Partners, has raised its dividend for 9 consecutive years. Western Gas Partners, is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
60.0% of Western Gas Partners, shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 0.0% of Western Gas Partners, shares are owned by company insiders. Comparatively, 11.0% of shares of all “Oil & Gas Refining and Marketing” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Western Gas Partners, and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Gas Partners,||26.41%||14.68%||7.24%|
|Western Gas Partners, Competitors||-1.35%||2.36%||1.49%|
Western Gas Partners, beats its competitors on 9 of the 15 factors compared.
About Western Gas Partners,
Western Gas Partners, LP is a master limited partnership (MLP) that acquires, owns, develops and operates midstream energy assets. The Company is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil in the United States. The Company provides midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. The Company’s operations and activities are managed by its general partner, which is indirectly controlled by Anadarko through Western Gas Equity Partners, LP (WGP). As of December 31, 2016, its assets and investments consisted of gathering systems, treating facilities, natural gas processing plants/trains, NGL pipelines, natural gas pipelines and oil pipelines. These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas.
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