Financial Analysis: Andeavor (ANDV) versus Enlink Midstream (XTXI)
Andeavor (NYSE: ANDV) and Enlink Midstream (NASDAQ:XTXI) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
78.9% of Andeavor shares are held by institutional investors. 0.9% of Andeavor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Andeavor and Enlink Midstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Andeavor pays an annual dividend of $2.36 per share and has a dividend yield of 2.0%. Enlink Midstream does not pay a dividend. Andeavor pays out 48.4% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Andeavor and Enlink Midstream, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Andeavor presently has a consensus target price of $121.35, indicating a potential upside of 1.87%. Given Andeavor’s higher probable upside, equities analysts clearly believe Andeavor is more favorable than Enlink Midstream.
Valuation and Earnings
This table compares Andeavor and Enlink Midstream’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Andeavor||$24.58 billion||0.76||$734.00 million||$4.88||24.41|
Andeavor has higher revenue and earnings than Enlink Midstream. Enlink Midstream is trading at a lower price-to-earnings ratio than Andeavor, indicating that it is currently the more affordable of the two stocks.
Andeavor beats Enlink Midstream on 11 of the 12 factors compared between the two stocks.
Andeavor Company Profile
Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.
Enlink Midstream Company Profile
Enlink Midstream Partners, L.P. is engaged, through its subsidiaries, in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs). The Company connects the wells of natural gas producers in the geographic areas of its gathering systems in order to gather for a fee or purchase the gas production, processes natural gas for the removal of NGLs, transports natural gas and NGLs and ultimately provides natural gas and NGLs to a variety of markets. In addition, it purchases natural gas and NGLs from producers not connected to its gathering systems for resale and markets natural gas and NGLs on behalf of producers for a fee. Its partnership interests consist of 19.7% limited partner interest in Crosstex Energy, L.P. (the Partnership), as of December 31, 2012, and 100% ownership interest in Crosstex Energy GP, LLC, the general partner of the Partnership, which owns a 2.0% general partner interest and all of the distribution rights in the Partnership.
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