Enable Midstream Partners (NYSE: ENBL) and EnLink Midstream Partners (NYSE:ENLK) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 8.2%. EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 9.8%. Enable Midstream Partners pays out 138.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream Partners pays out 5,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Enable Midstream Partners has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, EnLink Midstream Partners has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500.
This is a breakdown of current ratings for Enable Midstream Partners and EnLink Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enable Midstream Partners||1||5||4||0||2.30|
|EnLink Midstream Partners||0||10||5||0||2.33|
Enable Midstream Partners currently has a consensus price target of $17.17, suggesting a potential upside of 11.11%. EnLink Midstream Partners has a consensus price target of $16.62, suggesting a potential upside of 4.50%. Given Enable Midstream Partners’ higher possible upside, equities research analysts plainly believe Enable Midstream Partners is more favorable than EnLink Midstream Partners.
This table compares Enable Midstream Partners and EnLink Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enable Midstream Partners||14.59%||5.76%||3.69%|
|EnLink Midstream Partners||3.09%||4.52%||1.88%|
Institutional & Insider Ownership
18.7% of Enable Midstream Partners shares are owned by institutional investors. Comparatively, 45.3% of EnLink Midstream Partners shares are owned by institutional investors. 0.2% of EnLink Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Enable Midstream Partners and EnLink Midstream Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enable Midstream Partners||$2.80 billion||2.39||$436.00 million||$0.92||16.79|
|EnLink Midstream Partners||$5.74 billion||0.97||$148.90 million||$0.03||530.00|
Enable Midstream Partners has higher earnings, but lower revenue than EnLink Midstream Partners. Enable Midstream Partners is trading at a lower price-to-earnings ratio than EnLink Midstream Partners, indicating that it is currently the more affordable of the two stocks.
About Enable Midstream Partners
Enable Midstream Partners, LP owns, operates, and develops midstream energy infrastructure assets in the United States. The company operates in two segments, Gathering and Processing; and Transportation and Storage. The Gathering and Processing segment provides natural gas gathering, processing, and fractionation services in the Anadarko, Arkoma, and Ark-La-Tex basins, as well as crude oil gathering services in the Bakken Shale formation of the Williston Basin for its producer customers. The Transportation and Storage segment offers interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, utilities, and industrial customers. The company's natural gas gathering and processing assets are located in Oklahoma, Texas, Arkansas, and Louisiana; crude oil gathering assets are located in North Dakota; and natural gas transportation and storage assets extend from western Oklahoma and the Texas Panhandle to Louisiana, from Louisiana to Illinois, in Oklahoma, and from Louisiana to Alabama. As of December 31, 2017, its portfolio of midstream energy infrastructure assets included approximately 13,300 miles of gathering pipelines; 15 processing plants with 2.6 billion cubic feet per day of processing capacity; approximately 7,800 miles of interstate pipelines; approximately 2,200 miles of intrastate pipelines; and 8 natural gas storage facilities with 86.0 billion cubic feet of storage capacity. The company is based in Oklahoma City, Oklahoma. Enable Midstream Partners, LP is a subsidiary of CenterPoint Energy, Inc.
About EnLink Midstream Partners
EnLink Midstream Partners, LP, through its subsidiary, EnLink Midstream Operating, LP, provides midstream energy services. It operates through Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate segments. The company provides gathering, transmission, processing, fractionation, storage, condensate stabilization, brine, and marketing services to producers of natural gas, natural gas liquids (NGL), crude oil, and condensate. It operates processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by its own gathering systems or by third-party pipelines; and purchases natural gas and NGLs from producers and other supply sources, and sells that natural gas to utilities, industrial consumers, other marketers, and pipelines. The company also fractionates NGLs into purity products, such as ethane, propane, iso-butane, butane, and natural gasoline. It operates approximately 11,000 miles of pipelines, 20 natural gas processing plants, 7 fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, and brine disposal wells, as well as a crude oil trucking fleet. EnLink Midstream GP, LLC serves as the general partner of the company. The company was formerly known as Crosstex Energy L.P. and changed its name to EnLink Midstream Partners, LP in March 2014. EnLink Midstream Partners, LP was founded in 1992 and is headquartered in Dallas, Texas.
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