Halliburton (HAL) and Antero Midstream GP (AMGP) Head-To-Head Analysis

Halliburton (NYSE: HAL) and Antero Midstream GP (NASDAQ:AMGP) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Halliburton and Antero Midstream GP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Halliburton 1.13% 6.93% 2.47%
Antero Midstream GP N/A -77.88% -46.99%

Analyst Recommendations

This is a summary of current recommendations and price targets for Halliburton and Antero Midstream GP, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Halliburton 0 2 24 0 2.92
Antero Midstream GP 0 4 11 1 2.81

Halliburton currently has a consensus price target of $57.05, suggesting a potential upside of 34.45%. Antero Midstream GP has a consensus price target of $26.25, suggesting a potential upside of 43.44%. Given Antero Midstream GP’s higher possible upside, analysts clearly believe Antero Midstream GP is more favorable than Halliburton.

Dividends

Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Antero Midstream GP does not pay a dividend. Halliburton pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Halliburton and Antero Midstream GP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Halliburton $17.09 billion 2.16 $2.51 billion $0.24 176.80
Antero Midstream GP $39.24 million 86.82 N/A N/A N/A

Halliburton has higher revenue and earnings than Antero Midstream GP.

Institutional and Insider Ownership

79.3% of Halliburton shares are owned by institutional investors. 0.5% of Halliburton shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Halliburton beats Antero Midstream GP on 9 of the 14 factors compared between the two stocks.

About Halliburton

Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. It serves national and independent oil and natural gas companies. As of December 31, 2016, it had conducted business in approximately 70 countries around the world.

About Antero Midstream GP

Antero Midstream GP LP, formerly Antero Resources Midstream Management LLC, owns, operates and develops midstream energy infrastructure. The Company’s segments include gathering and processing and water handling and treatment. The gathering and processing segment consist of long-term, fee-based activities including low-pressure gathering, compression, high-pressure gathering, processing, fractionation, and condensate gathering. The Company’s water handling and treatment segment consists of long-term fee based activities including fresh water delivery used in completion activity, and water handling services. The Company’s assets are located both in the southwestern core of the Marcellus Shale in northwest West Virginia and in the core of the Utica Shale in southern Ohio.

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