Head-To-Head Comparison: Noble Midstream Partners (NBLX) and Southcross Energy Partners (SXE)
Noble Midstream Partners (NYSE: NBLX) and Southcross Energy Partners (NYSE:SXE) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Noble Midstream Partners pays an annual dividend of $1.95 per share and has a dividend yield of 3.5%. Southcross Energy Partners does not pay a dividend. Noble Midstream Partners pays out 48.6% of its earnings in the form of a dividend. Southcross Energy Partners has increased its dividend for 4 consecutive years.
This table compares Noble Midstream Partners and Southcross Energy Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Noble Midstream Partners||$160.72 million||8.11||$74.44 million||$4.01||13.99|
|Southcross Energy Partners||$548.72 million||0.28||-$94.94 million||($1.63)||-1.21|
Noble Midstream Partners has higher earnings, but lower revenue than Southcross Energy Partners. Southcross Energy Partners is trading at a lower price-to-earnings ratio than Noble Midstream Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Noble Midstream Partners and Southcross Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Noble Midstream Partners||55.83%||36.74%||24.51%|
|Southcross Energy Partners||-13.74%||-16.59%||-7.83%|
This is a breakdown of recent recommendations and price targets for Noble Midstream Partners and Southcross Energy Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Noble Midstream Partners||0||2||6||0||2.75|
|Southcross Energy Partners||0||1||0||0||2.00|
Noble Midstream Partners currently has a consensus target price of $54.29, indicating a potential downside of 3.23%. Given Noble Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Noble Midstream Partners is more favorable than Southcross Energy Partners.
Insider & Institutional Ownership
75.6% of Noble Midstream Partners shares are owned by institutional investors. Comparatively, 2.8% of Southcross Energy Partners shares are owned by institutional investors. 23.8% of Southcross Energy Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Noble Midstream Partners beats Southcross Energy Partners on 12 of the 16 factors compared between the two stocks.
About Noble Midstream Partners
Noble Midstream Partners LP is engaged in owning, operating, developing and acquiring a range of domestic midstream infrastructure assets. The Company’s areas of focus are in the area of Denver-Julesburg (DJ) Basin in Colorado and the Southern Delaware Basin position of the Permian Basin in Texas (Delaware Basin). Its segments include Gathering Systems, Fresh Water Delivery, and Investments in White Cliffs and Other. The Gathering Systems segment includes crude oil, natural gas and produced water gathering, as well as crude oil treating. It holds interest in White Cliffs Pipeline L.L.C. (the White Cliffs Interest). The Investments in White Cliffs and Other segment includes activity associated with the White Cliffs Interest. As of December 31, 2016, the White Cliffs Pipeline system consisted of two 527-mile crude oil pipelines that extended from the DJ Basin to the Cushing, Oklahoma. It provides crude oil, natural gas, and water-related midstream services for Noble Energy, Inc.
About Southcross Energy Partners
Southcross Energy Partners, L.P. provides natural gas gathering, processing, treating, compression and transportation services and natural gas liquid (NGL) fractionation and transportation services. The Company also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama As of December 31, 2016, its assets consisted of gathering systems, intrastate pipelines, two natural gas processing plants, one fractionation facility, 20 compressor stations and a treating system. Its gathering systems and intrastate pipelines include South Texas and Mississippi/Alabama. The assets in its South Texas region are located between Montgomery County, which is north of Houston, and Webb and Dimmit Counties near the Texas-Mexico border. The assets in its Mississippi region are located principally in the southern half of the state and consist of intrastate pipeline system in Mississippi.
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