Penntex Midstream Partners (NASDAQ: PTXP) and VTTI Energy Partners (NYSE:VTTI) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

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55.0% of Penntex Midstream Partners shares are held by institutional investors. Comparatively, 74.5% of VTTI Energy Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Penntex Midstream Partners pays an annual dividend of $1.18 per share and has a dividend yield of 5.9%. VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Penntex Midstream Partners pays out 453.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VTTI Energy Partners pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VTTI Energy Partners has increased its dividend for 3 consecutive years. VTTI Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Penntex Midstream Partners and VTTI Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penntex Midstream Partners 34.54% 11.00% 5.81%
VTTI Energy Partners 35.11% 8.09% 7.61%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Penntex Midstream Partners and VTTI Energy Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penntex Midstream Partners 0 4 0 0 2.00
VTTI Energy Partners 0 2 0 0 2.00

Penntex Midstream Partners presently has a consensus target price of $20.00, indicating a potential upside of 0.00%. VTTI Energy Partners has a consensus target price of $19.50, indicating a potential upside of 0.00%.

Earnings & Valuation

This table compares Penntex Midstream Partners and VTTI Energy Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penntex Midstream Partners N/A N/A N/A $0.26 76.92
VTTI Energy Partners N/A N/A N/A $0.81 24.07

VTTI Energy Partners is trading at a lower price-to-earnings ratio than Penntex Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Summary

VTTI Energy Partners beats Penntex Midstream Partners on 7 of the 9 factors compared between the two stocks.

About Penntex Midstream Partners

PennTex Midstream Partners, LP, focuses on owning, operating, acquiring and developing midstream energy infrastructure assets in North America. The Company owns and operates midstream gathering, processing and transportation assets in northern Louisiana. The Company provides natural gas gathering and processing and residue gas and natural gas liquid (NGL) transportation services to producers focused on the Cotton Valley formation in northern Louisiana. The Company’s assets primarily consisted of natural gas gathering pipeline, two 200 million cubic feet per day (MMcf/d) design-capacity cryogenic natural gas processing plants, and residue gas and NGL transportation pipelines, as of December 31, 2016. In addition to providing midstream services to its primary customer with its existing assets, the Company pursues other opportunities for organic development and growth as producers in its region continue to develop their acreage.

About VTTI Energy Partners

VTTI Energy Partners LP provides terminaling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. The Company operates through the segment of energy storage terminaling business. Its assets consist of approximately 42.6% interest in VTTI MLP B.V., which owns a portfolio of over six terminals with over 400 tanks and approximately 35.7 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America. Its terminals are located in international supply and demand centers for refined petroleum products and crude oil and provide midstream infrastructure services to its customers at these international market hubs. It provides storage and terminaling services for energy industry participants, including marketing companies, integrated oil companies, national oil companies, distributors, and chemical and petrochemical companies.

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