Midcoast Energy Partners (NYSE: MEP) is one of 39 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its competitors? We will compare Midcoast Energy Partners to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Risk and Volatility

Midcoast Energy Partners has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500. Comparatively, Midcoast Energy Partners’ competitors have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Earnings and Valuation

This table compares Midcoast Energy Partners and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Midcoast Energy Partners N/A N/A -4.52
Midcoast Energy Partners Competitors $44.57 billion $4.35 billion 22.22

Midcoast Energy Partners’ competitors have higher revenue and earnings than Midcoast Energy Partners. Midcoast Energy Partners is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Midcoast Energy Partners pays an annual dividend of $1.43 per share and has a dividend yield of 18.0%. Midcoast Energy Partners pays out -81.2% of its earnings in the form of a dividend. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.0% and pay out 656.8% of their earnings in the form of a dividend. Midcoast Energy Partners has increased its dividend for 2 consecutive years. Midcoast Energy Partners is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Midcoast Energy Partners and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midcoast Energy Partners -5.25% -34.51% -2.64%
Midcoast Energy Partners Competitors -1.00% 2.03% 1.32%

Analyst Recommendations

This is a summary of current ratings and target prices for Midcoast Energy Partners and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midcoast Energy Partners 0 1 0 0 2.00
Midcoast Energy Partners Competitors 450 1962 2284 134 2.44

Midcoast Energy Partners currently has a consensus price target of $8.00, indicating a potential upside of 0.63%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 11.31%. Given Midcoast Energy Partners’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Midcoast Energy Partners has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

64.7% of Midcoast Energy Partners shares are held by institutional investors. Comparatively, 47.2% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Midcoast Energy Partners competitors beat Midcoast Energy Partners on 9 of the 13 factors compared.

Midcoast Energy Partners Company Profile

Midcoast Energy Partners, L.P. (MEP) is a limited partnership company that is engaged in the natural gas and natural gas liquids (NGL) midstream business. It operates through two segments: Gathering, Processing and Transportation, and Logistics and Marketing. It also provides marketing services of natural gas and NGLs to wholesale customers. The Company’s gathering, processing and transportation business includes natural gas and NGL gathering and transportation pipeline systems, natural gas processing and treating facilities, condensate stabilizers and an NGL fractionation facility. Its logistics and marketing business provides marketing services of natural gas, NGLs and condensate received from its gathering, processing and transportation business. The Company holds interest in Midcoast Operating, L.P., a Texas limited partnership that owns a network of natural gas and NGL gathering and transportation systems, natural gas processing and treating facilities.

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