EnLink Midstream (NYSE: ENLC) and Semgroup Corporation (NYSE:SEMG) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for EnLink Midstream and Semgroup Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnLink Midstream 1 8 0 0 1.89
Semgroup Corporation 0 4 1 0 2.20

EnLink Midstream currently has a consensus target price of $19.11, suggesting a potential upside of 11.76%. Semgroup Corporation has a consensus target price of $32.75, suggesting a potential upside of 13.91%. Given Semgroup Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Semgroup Corporation is more favorable than EnLink Midstream.

Earnings and Valuation

This table compares EnLink Midstream and Semgroup Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EnLink Midstream $4.92 billion 0.63 $751.90 million N/A N/A
Semgroup Corporation $1.66 billion 1.36 $147.28 million $0.03 958.33

EnLink Midstream has higher revenue and earnings than Semgroup Corporation.

Institutional & Insider Ownership

34.6% of EnLink Midstream shares are owned by institutional investors. Comparatively, 90.7% of Semgroup Corporation shares are owned by institutional investors. 1.2% of EnLink Midstream shares are owned by company insiders. Comparatively, 0.8% of Semgroup Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

EnLink Midstream has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500. Comparatively, Semgroup Corporation has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.

Dividends

EnLink Midstream pays an annual dividend of $1.02 per share and has a dividend yield of 6.0%. Semgroup Corporation pays an annual dividend of $1.80 per share and has a dividend yield of 6.3%. Semgroup Corporation pays out 6,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream has raised its dividend for 3 consecutive years and Semgroup Corporation has raised its dividend for 2 consecutive years.

Profitability

This table compares EnLink Midstream and Semgroup Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnLink Midstream 0.02% 0.05% 0.02%
Semgroup Corporation 0.24% 3.46% 1.60%

Summary

Semgroup Corporation beats EnLink Midstream on 9 of the 15 factors compared between the two stocks.

About EnLink Midstream

EnLink Midstream, LLC is an integrated midstream company. The Company’s assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership’s segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.

About Semgroup Corporation

SemGroup Corporation is a provider of gathering, transportation, storage, distribution, marketing and other midstream services to producers, refiners of petroleum products and other market participants located in the Midwest and Rocky Mountain regions of the United States and Canada. The Company’s segments include Crude Transportation, which operates crude oil pipelines and truck transportation businesses in the United States; Crude Facilities, which operates crude oil storage and terminal businesses in the United States; Crude Supply and Logistics, which operates a crude oil marketing business; SemGas, which provides natural gas gathering and processing services; SemCAMS, which operates natural gas processing and gathering facilities in Alberta, Canada; SemLogistics, which owns petroleum products storage facility in the United Kingdom, and SemMexico, which provides liquid asphalt cement products and product application services to the Mexican market, and Corporate and Other.

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