Enable Midstream Partners (ENBL) & Magellan Midstream Partners (MMP) Financial Analysis
Enable Midstream Partners (NYSE: ENBL) and Magellan Midstream Partners (NYSE:MMP) are both mid-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
Risk & Volatility
Enable Midstream Partners has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Magellan Midstream Partners has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
18.2% of Enable Midstream Partners shares are owned by institutional investors. Comparatively, 62.1% of Magellan Midstream Partners shares are owned by institutional investors. 0.2% of Magellan Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Enable Midstream Partners and Magellan Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enable Midstream Partners||0||5||3||0||2.38|
|Magellan Midstream Partners||2||5||3||0||2.10|
Enable Midstream Partners presently has a consensus price target of $18.31, indicating a potential upside of 17.69%. Magellan Midstream Partners has a consensus price target of $78.11, indicating a potential upside of 4.38%. Given Enable Midstream Partners’ stronger consensus rating and higher probable upside, research analysts plainly believe Enable Midstream Partners is more favorable than Magellan Midstream Partners.
This table compares Enable Midstream Partners and Magellan Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enable Midstream Partners||14.82%||5.24%||3.46%|
|Magellan Midstream Partners||34.50%||40.99%||12.58%|
Earnings and Valuation
This table compares Enable Midstream Partners and Magellan Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enable Midstream Partners||$2.27 billion||2.96||$312.00 million||$0.83||18.75|
|Magellan Midstream Partners||$2.21 billion||7.74||$802.77 million||$3.70||20.22|
Magellan Midstream Partners has lower revenue, but higher earnings than Enable Midstream Partners. Enable Midstream Partners is trading at a lower price-to-earnings ratio than Magellan Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 8.2%. Magellan Midstream Partners pays an annual dividend of $3.62 per share and has a dividend yield of 4.8%. Enable Midstream Partners pays out 153.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magellan Midstream Partners pays out 97.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magellan Midstream Partners has raised its dividend for 8 consecutive years.
Magellan Midstream Partners beats Enable Midstream Partners on 11 of the 16 factors compared between the two stocks.
Enable Midstream Partners Company Profile
Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states.
Magellan Midstream Partners Company Profile
Magellan Midstream Partners, L.P. is principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. The Company operates through three segments: refined products, crude oil and marine storage. As of December 31, 2016, its asset portfolio, including the assets of its joint ventures, consisted of its refined products segment, consisting 9,700-mile refined products pipeline system with 53 terminals, as well as 26 independent terminals not connected to its pipeline system and its 1,100-mile ammonia pipeline system; its crude oil segment, consisted of approximately 2,200 miles of crude oil pipelines and storage facilities with an aggregate storage capacity of approximately 26 million barrels, of which 16 million are used for contract storage, and its marine storage segment, consisted of five marine terminals located along coastal waterways with an aggregate storage capacity of approximately 26 million barrels.
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