Analyzing Columbia Pipeline Partners (CPPL) and Its Rivals

Columbia Pipeline Partners (NYSE: CPPL) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it weigh in compared to its rivals? We will compare Columbia Pipeline Partners to similar businesses based on the strength of its risk, earnings, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Dividends

Columbia Pipeline Partners pays an annual dividend of $0.79 per share and has a dividend yield of 4.6%. Columbia Pipeline Partners pays out 112.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.8% and pay out 171.7% of their earnings in the form of a dividend.

Institutional & Insider Ownership

88.2% of Columbia Pipeline Partners shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are owned by company 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.

Profitability

This table compares Columbia Pipeline Partners and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Pipeline Partners 6.40% 0.92% 0.84%
Columbia Pipeline Partners Competitors 17.34% 14.21% 5.49%

Valuation and Earnings

This table compares Columbia Pipeline Partners and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Columbia Pipeline Partners N/A N/A 24.50
Columbia Pipeline Partners Competitors $5.66 billion $1.31 billion 35.53

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Columbia Pipeline Partners and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Pipeline Partners 0 2 0 0 2.00
Columbia Pipeline Partners Competitors 288 1775 2370 85 2.50

Columbia Pipeline Partners presently has a consensus target price of $17.00, suggesting a potential downside of 0.87%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 24.35%. Given Columbia Pipeline Partners’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Columbia Pipeline Partners has less favorable growth aspects than its rivals.

Risk & Volatility

Columbia Pipeline Partners has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Columbia Pipeline Partners’ rivals have a beta of 1.39, indicating that their average stock price is 39% more volatile than the S&P 500.

Summary

Columbia Pipeline Partners rivals beat Columbia Pipeline Partners on 11 of the 13 factors compared.

Columbia Pipeline Partners Company Profile

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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