Financial Analysis: VTTI Energy Partners (VTTI) and Columbia Pipeline Group (CPGX)
VTTI Energy Partners (NYSE: VTTI) and Columbia Pipeline Group (NYSE:CPGX) are both oil & gas transportation services – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Insider & Institutional Ownership
74.5% of VTTI Energy Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Columbia Pipeline Group pays an annual dividend of $0.54 per share and has a dividend yield of 2.1%. VTTI Energy Partners pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Columbia Pipeline Group pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VTTI Energy Partners has increased its dividend for 2 consecutive years. VTTI Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and target prices for VTTI Energy Partners and Columbia Pipeline Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VTTI Energy Partners||0||3||0||0||2.00|
|Columbia Pipeline Group||0||0||0||0||N/A|
VTTI Energy Partners currently has a consensus price target of $19.50, indicating a potential upside of 0.00%. Given VTTI Energy Partners’ higher possible upside, analysts clearly believe VTTI Energy Partners is more favorable than Columbia Pipeline Group.
Earnings & Valuation
This table compares VTTI Energy Partners and Columbia Pipeline Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VTTI Energy Partners||N/A||N/A||N/A||$0.81||24.07|
|Columbia Pipeline Group||N/A||N/A||N/A||$0.72||35.40|
VTTI Energy Partners is trading at a lower price-to-earnings ratio than Columbia Pipeline Group, indicating that it is currently the more affordable of the two stocks.
This table compares VTTI Energy Partners and Columbia Pipeline Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VTTI Energy Partners||35.11%||8.09%||7.61%|
|Columbia Pipeline Group||23.76%||7.15%||3.45%|
VTTI Energy Partners beats Columbia Pipeline Group on 8 of the 9 factors compared between the two stocks.
About VTTI Energy Partners
VTTI Energy Partners LP provides terminaling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. The Company operates through the segment of energy storage terminaling business. Its assets consist of approximately 42.6% interest in VTTI MLP B.V., which owns a portfolio of over six terminals with over 400 tanks and approximately 35.7 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America. Its terminals are located in international supply and demand centers for refined petroleum products and crude oil and provide midstream infrastructure services to its customers at these international market hubs. It provides storage and terminaling services for energy industry participants, including marketing companies, integrated oil companies, national oil companies, distributors, and chemical and petrochemical companies.
About Columbia Pipeline Group
Columbia Pipeline Group, Inc. owns, operates and develops a portfolio of pipelines, storage and related midstream assets. The Company is engaged in regulated gas transportation and storage services for local distribution companies (LDCs), marketers, producers, and industrial and commercial customers located in northeastern, mid-Atlantic, Midwestern and southern states and the District of Columbia, along with unregulated businesses that include midstream services, including gathering, treating, conditioning, processing, compression and liquids handling, and development of mineral rights positions. Its segment consists of portfolio of pipelines, storage and related midstream assets. It owns approximately 15,000 miles of strategically located interstate gas pipelines extending from New York to the Gulf of Mexico and an underground natural gas storage system with approximately 300 million dekatherms (MMDth) of working gas capacity, as well as related gathering and processing assets.
Receive News & Ratings for VTTI Energy Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VTTI Energy Partners and related companies with MarketBeat.com's FREE daily email newsletter.