Western Gas Equity Partners, (WGP) and Ngl Energy Partners Lp (NGL) Head-To-Head Review

Western Gas Equity Partners, (NYSE: WGP) and Ngl Energy Partners Lp (NYSE:NGL) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Earnings and Valuation

This table compares Western Gas Equity Partners, and Ngl Energy Partners Lp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Western Gas Equity Partners, $1.80 billion 4.51 $345.77 million $1.65 22.54
Ngl Energy Partners Lp $13.02 billion 0.12 $136.81 million ($2.10) -6.05

Western Gas Equity Partners, has higher revenue, but lower earnings than Ngl Energy Partners Lp. Ngl Energy Partners Lp is trading at a lower price-to-earnings ratio than Western Gas Equity Partners,, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Western Gas Equity Partners, has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Ngl Energy Partners Lp has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Dividends

Western Gas Equity Partners, pays an annual dividend of $2.15 per share and has a dividend yield of 5.8%. Ngl Energy Partners Lp pays an annual dividend of $1.56 per share and has a dividend yield of 12.3%. Western Gas Equity Partners, pays out 130.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ngl Energy Partners Lp pays out -74.3% of its earnings in the form of a dividend. Ngl Energy Partners Lp has raised its dividend for 3 consecutive years. Ngl Energy Partners Lp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

17.9% of Western Gas Equity Partners, shares are owned by institutional investors. Comparatively, 68.9% of Ngl Energy Partners Lp shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Western Gas Equity Partners, and Ngl Energy Partners Lp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Gas Equity Partners, 16.96% 8.99% 4.69%
Ngl Energy Partners Lp -1.40% -4.60% -1.45%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Western Gas Equity Partners, and Ngl Energy Partners Lp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Gas Equity Partners, 0 2 6 0 2.75
Ngl Energy Partners Lp 0 2 3 0 2.60

Western Gas Equity Partners, presently has a consensus target price of $50.50, indicating a potential upside of 35.79%. Ngl Energy Partners Lp has a consensus target price of $18.20, indicating a potential upside of 43.31%. Given Ngl Energy Partners Lp’s higher possible upside, analysts clearly believe Ngl Energy Partners Lp is more favorable than Western Gas Equity Partners,.

Summary

Western Gas Equity Partners, beats Ngl Energy Partners Lp on 9 of the 15 factors compared between the two stocks.

About Western Gas Equity Partners,

Western Gas Equity Partners, LP is a limited partnership. The Company is formed to own approximately three types of partnership interests in Western Gas Partners, LP (WES). WES is an master limited partnership (MLP) engaged in the business of gathering, compressing, treating, processing and transporting natural gas, and gathering, stabilizing and transporting condensate, natural gas liquids (NGLs) and crude oil. WES provides these midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. Its assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas. The Bison treating facility treats and compresses gas from coal-bed methane wells in the Powder River Basin of Wyoming. MIGC, LLC receives gas from various coal-bed methane gathering systems in the Powder River Basin and the Hilight system, as well as from WBI Energy Transmission, Inc.

About Ngl Energy Partners Lp

NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company’s segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company’s refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.

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