Reviewing Enbridge Energy Partners (EEP) & Columbia Pipeline Partners (CPPL)
Enbridge Energy Partners (NYSE: EEP) and Columbia Pipeline Partners (NYSE:CPPL) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Enbridge Energy Partners pays an annual dividend of $1.40 per share and has a dividend yield of 9.5%. Columbia Pipeline Partners pays an annual dividend of $0.79 per share and has a dividend yield of 4.6%. Enbridge Energy Partners pays out 186.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Columbia Pipeline Partners pays out 108.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge Energy Partners has increased its dividend for 2 consecutive years and Columbia Pipeline Partners has increased its dividend for 8 consecutive years.
Insider & Institutional Ownership
44.9% of Enbridge Energy Partners shares are held by institutional investors. Comparatively, 88.2% of Columbia Pipeline Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings for Enbridge Energy Partners and Columbia Pipeline Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enbridge Energy Partners||1||9||2||0||2.08|
|Columbia Pipeline Partners||0||0||0||0||N/A|
Enbridge Energy Partners presently has a consensus target price of $18.63, suggesting a potential upside of 26.61%. Given Enbridge Energy Partners’ higher possible upside, research analysts plainly believe Enbridge Energy Partners is more favorable than Columbia Pipeline Partners.
Earnings & Valuation
This table compares Enbridge Energy Partners and Columbia Pipeline Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enbridge Energy Partners||$4.48 billion||1.07||-$67.70 million||$0.75||19.61|
|Columbia Pipeline Partners||N/A||N/A||N/A||$0.73||23.49|
Columbia Pipeline Partners has lower revenue, but higher earnings than Enbridge Energy Partners. Enbridge Energy Partners is trading at a lower price-to-earnings ratio than Columbia Pipeline Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Enbridge Energy Partners and Columbia Pipeline Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enbridge Energy Partners||8.47%||6.03%||1.93%|
|Columbia Pipeline Partners||6.40%||0.92%||0.84%|
Enbridge Energy Partners beats Columbia Pipeline Partners on 8 of the 12 factors compared between the two stocks.
About Enbridge Energy Partners
Enbridge Energy Partners, L.P is a geographically and operationally diversified organization that provides crude oil and liquid petroleum gathering and transportation and storage services. The Company operates through the Liquids business segment. Its Liquids segment includes the operations of its Lakehead, North Dakota and mid-continent systems. The Company’s Lakehead system along with the Enbridge system formed the Mainline system, together formed the liquid petroleum pipeline system, as of December 31, 2016. The Mainline system serves refining centers in the Great Lakes and Midwest regions of the United States and the provinces of Ontario and Quebec, Canada. The Lakehead system is the United States portion of the Mainline system.
About Columbia Pipeline Partners
Columbia Pipeline Partners LP (the Partnership) is a limited partnership company operating a portfolio of pipelines, storage and related midstream assets. It is engaged in interstate gas transportation and storage services for local distribution companies (LDCs), marketers and industrial and commercial customers located in northeastern, mid-Atlantic, Midwestern and southern states, and the District of Columbia along with unregulated businesses that include midstream services, including gathering, treating, conditioning, processing, compression and liquids handling, and development of mineral rights positions. The Company owns, operates and develops a portfolio of pipelines, storage and related midstream assets. The Company has a general partner interest in CPG OpCo LP (Columbia OpCo), as well as a limited partner interest in Columbia OpCo, a limited partnership that owns the natural gas transmission and storage assets of Columbia Energy Group (CEG).
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