Financial Comparison: Crestwood Equity Partners (CEQP) & Hess Corporation (HES)
Crestwood Equity Partners (NYSE: CEQP) and Hess Corporation (NYSE:HES) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
This table compares Crestwood Equity Partners and Hess Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crestwood Equity Partners||-4.68%||-1.13%||-0.49%|
Valuation & Earnings
This table compares Crestwood Equity Partners and Hess Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Crestwood Equity Partners||$3.06 billion||0.56||$311.60 million||($2.24)||-11.00|
|Hess Corporation||$4.94 billion||2.91||$1.45 billion||($19.30)||-2.35|
Hess Corporation has higher revenue and earnings than Crestwood Equity Partners. Crestwood Equity Partners is trading at a lower price-to-earnings ratio than Hess Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
65.2% of Crestwood Equity Partners shares are held by institutional investors. Comparatively, 87.2% of Hess Corporation shares are held by institutional investors. 36.2% of Crestwood Equity Partners shares are held by insiders. Comparatively, 11.8% of Hess Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Crestwood Equity Partners and Hess Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crestwood Equity Partners||0||0||4||0||3.00|
Crestwood Equity Partners presently has a consensus price target of $28.00, indicating a potential upside of 13.59%. Hess Corporation has a consensus price target of $51.83, indicating a potential upside of 14.52%. Given Hess Corporation’s higher possible upside, analysts plainly believe Hess Corporation is more favorable than Crestwood Equity Partners.
Volatility and Risk
Crestwood Equity Partners has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500. Comparatively, Hess Corporation has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.
Crestwood Equity Partners pays an annual dividend of $2.40 per share and has a dividend yield of 9.7%. Hess Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Crestwood Equity Partners pays out -107.1% of its earnings in the form of a dividend. Hess Corporation pays out -5.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Crestwood Equity Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.
Crestwood Equity Partners beats Hess Corporation on 9 of the 15 factors compared between the two stocks.
Crestwood Equity Partners Company Profile
Crestwood Equity Partners LP is a holding company and a master limited partnership (MLP). The Company develops, acquires, owns or controls, and operates assets and operations within the energy midstream sector. The Company’s segments include gathering and processing (G&P), which includes its natural gas, crude oil and produced water G&P operations; storage and transportation, which includes its natural gas and crude oil storage and transportation operations, and marketing, supply and logistics, which includes its natural gas liquid (NGL) supply and logistics business, crude oil storage and rail loading facilities and fleet, and salt production business. The Company provides infrastructure solutions to service natural gas 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. Its operating assets are owned by or through its subsidiary, Crestwood Midstream Partners LP.
Hess Corporation Company Profile
Hess Corporation is an exploration and production company. The Company is engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids (NGL) and natural gas. The Company’s segments include Exploration and Production, and Bakken Midstream. Its Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, NGLs and natural gas with production operations primarily in the United States, Denmark, Equatorial Guinea, the Malaysia/Thailand Joint Development Area (JDA), Malaysia and Norway. The Bakken Midstream segment provides fee-based services, including crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and NGLs, and the storage and terminaling of propane, primarily in the Bakken shale play of North Dakota.
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