Financial Analysis: Enterprise Products Partners (NYSE:EPD) and Rattler Midstream (NYSE:RTLR)

Enterprise Products Partners (NYSE:EPD) and Rattler Midstream (NASDAQ:RTLR) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Enterprise Products Partners and Rattler Midstream, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Products Partners 0 0 16 1 3.06
Rattler Midstream 0 4 11 0 2.73



Enterprise Products Partners presently has a consensus target price of $33.40, suggesting a potential upside of 9.26%. Rattler Midstream has a consensus target price of $22.54, suggesting a potential upside of 14.23%. Given Rattler Midstream’s higher possible upside, analysts plainly believe Rattler Midstream is more favorable than Enterprise Products Partners.

Dividends

Enterprise Products Partners pays an annual dividend of $1.75 per share and has a dividend yield of 5.7%. Rattler Midstream does not pay a dividend. Enterprise Products Partners pays out 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enterprise Products Partners has raised its dividend for 20 consecutive years.

Insider & Institutional Ownership

36.7% of Enterprise Products Partners shares are owned by institutional investors. 37.5% of Enterprise Products Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Enterprise Products Partners and Rattler Midstream’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise Products Partners $36.53 billion 1.83 $4.17 billion $1.94 15.76
Rattler Midstream N/A N/A N/A N/A N/A

Enterprise Products Partners has higher revenue and earnings than Rattler Midstream.

Profitability

This table compares Enterprise Products Partners and Rattler Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Products Partners 12.67% 19.50% 8.11%
Rattler Midstream N/A N/A N/A

Summary

Enterprise Products Partners beats Rattler Midstream on 11 of the 13 factors compared between the two stocks.

About Enterprise Products Partners

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services, as well as NGL export docks and related services. It operates approximately 19,200 miles of NGL pipelines; NGL and related product storage facilities; 16 NGL fractionators; and liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,300 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 360 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,700 miles of natural gas pipeline systems to gather and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It leases underground salt dome natural gas storage facilities in Texas and Louisiana; owns an underground salt dome storage cavern in Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related activities, including 800 miles of pipelines; butane isomerization complex and related deisobutanizer units; and octane enhancement and high purity isobutylene production facilities. It also operates approximately 4,100 miles of refined products pipelines; and terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.

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