Head to Head Analysis: EnLink Midstream (ENLC) vs. Enable Midstream Partners, (ENBL)

Enable Midstream Partners, (NYSE: ENBL) and EnLink Midstream (NYSE:ENLC) are both mid-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Enable Midstream Partners, and EnLink Midstream, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enable Midstream Partners, 1 4 3 0 2.25
EnLink Midstream 1 9 0 0 1.90

Enable Midstream Partners, presently has a consensus price target of $17.05, suggesting a potential upside of 12.39%. EnLink Midstream has a consensus price target of $18.80, suggesting a potential upside of 18.24%. Given EnLink Midstream’s higher possible upside, analysts clearly believe EnLink Midstream is more favorable than Enable Midstream Partners,.

Profitability

This table compares Enable Midstream Partners, and EnLink Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enable Midstream Partners, 15.20% 5.19% 3.43%
EnLink Midstream 0.02% 0.05% 0.02%

Risk and Volatility

Enable Midstream Partners, has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, EnLink Midstream has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500.

Dividends

Enable Midstream Partners, pays an annual dividend of $1.27 per share and has a dividend yield of 8.4%. EnLink Midstream pays an annual dividend of $1.02 per share and has a dividend yield of 6.4%. Enable Midstream Partners, pays out 147.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners, has raised its dividend for 2 consecutive years and EnLink Midstream has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

18.0% of Enable Midstream Partners, shares are owned by institutional investors. Comparatively, 34.5% of EnLink Midstream shares are owned by institutional investors. 1.2% of EnLink Midstream shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Enable Midstream Partners, and EnLink Midstream’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enable Midstream Partners, $2.53 billion 2.59 $846.00 million $0.86 17.64
EnLink Midstream $4.92 billion 0.58 $751.90 million N/A N/A

Enable Midstream Partners, has higher revenue, but lower earnings than EnLink Midstream.

Summary

Enable Midstream Partners, beats EnLink Midstream on 8 of the 14 factors compared between the two stocks.

About Enable Midstream Partners,

Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states.

About EnLink Midstream

EnLink Midstream, LLC is an integrated midstream company. The Company’s assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership’s segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.

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