Head-To-Head Analysis: Hess Midstream Partners (HESM) & Teekay LNG Partners L.P. (TGP)
Hess Midstream Partners (NASDAQ: HESM) and Teekay LNG Partners L.P. (NYSE:TGP) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.
This table compares Hess Midstream Partners and Teekay LNG Partners L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hess Midstream Partners||49.24%||N/A||N/A|
|Teekay LNG Partners L.P.||38.28%||6.12%||2.25%|
Valuation and Earnings
This table compares Hess Midstream Partners and Teekay LNG Partners L.P.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hess Midstream Partners||$540.50 million||2.15||$357.30 million||N/A||N/A|
|Teekay LNG Partners L.P.||$403.52 million||3.37||$279.27 million||$1.71||10.00|
Hess Midstream Partners has higher revenue and earnings than Teekay LNG Partners L.P..
Teekay LNG Partners L.P. pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. Hess Midstream Partners does not pay a dividend. Teekay LNG Partners L.P. pays out 32.7% of its earnings in the form of a dividend.
Insider and Institutional Ownership
38.1% of Teekay LNG Partners L.P. shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings for Hess Midstream Partners and Teekay LNG Partners L.P., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hess Midstream Partners||0||0||5||0||3.00|
|Teekay LNG Partners L.P.||0||3||2||0||2.40|
Hess Midstream Partners currently has a consensus price target of $28.80, indicating a potential upside of 35.15%. Teekay LNG Partners L.P. has a consensus price target of $16.50, indicating a potential downside of 3.51%. Given Hess Midstream Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Hess Midstream Partners is more favorable than Teekay LNG Partners L.P..
Hess Midstream Partners beats Teekay LNG Partners L.P. on 7 of the 13 factors compared between the two stocks.
Hess Midstream Partners Company Profile
Hess Midstream Partners LP is a fee-based, traditional master limited partnership formed to own, operate, develop and acquire a set of midstream assets to provide services to Hess and third-party crude oil and natural gas producers. The Company’s assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota (collectively referred as the Bakken). It operates its business through three segments: gathering; processing and storage; and terminaling and export. The Company’s gathering business consisted of its 20% controlling economic interest in Gathering Opco, which owns North Dakota natural gas, natural gas liquids and crude oil gathering systems. The Company’s processing and storage business consisted of its 20% controlling economic interest in the Tioga Gas Plant and its 100% interest in the Mentor Storage Terminal. The Company’s terminaling and export business consisted of its 20% controlling economic interest in Logistics Opco.
Teekay LNG Partners L.P. Company Profile
Teekay LNG Partners L.P. is an international provider of marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil. The Company’s fleet, excluding newbuildings, consists of approximately 30 LNG carriers (including the six MALT LNG Carriers, four RasGas 3 LNG Carriers, four Angola LNG Carriers and two Exmar LNG Carriers), over 20 LPG carriers (including 20 Exmar LPG Carriers), approximately seven Suezmax-class crude oil tankers and a Handymax product tanker, all of which are double-hulled. Its segments include liquefied gas segment and conventional tanker segment. The liquefied gas segment consists of LNG carriers, LPG carriers and multigas carriers, which can carry both LNG and LPG. The conventional tanker segment consists of approximately seven Suezmax-class crude oil tankers and a Handymax product tanker. Its vessels primarily operate under long-term, fixed-rate charters with energy and utility companies, and Teekay Corporation.
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