Critical Comparison: Enable Midstream Partners (ENBL) & BP Midstream Partners (BPMP)

Enable Midstream Partners (NYSE: ENBL) and BP Midstream Partners (NYSE:BPMP) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Enable Midstream Partners and BP Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enable Midstream Partners 0 6 3 0 2.33
BP Midstream Partners 0 3 2 0 2.40

Enable Midstream Partners presently has a consensus price target of $17.85, suggesting a potential upside of 21.43%. BP Midstream Partners has a consensus price target of $20.75, suggesting a potential upside of 15.73%. Given Enable Midstream Partners’ higher possible upside, analysts clearly believe Enable Midstream Partners is more favorable than BP Midstream Partners.

Institutional & Insider Ownership

18.2% of Enable Midstream Partners shares are owned by institutional investors. 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Enable Midstream Partners 14.82% 5.24% 3.46%
BP Midstream Partners N/A N/A N/A

Valuation and Earnings

This table compares Enable Midstream Partners and BP Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enable Midstream Partners $2.27 billion 2.80 $312.00 million $0.84 17.50
BP Midstream Partners N/A N/A N/A N/A N/A

Enable Midstream Partners has higher revenue and earnings than BP Midstream Partners.

Dividends

Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 8.6%. BP Midstream Partners does not pay a dividend. Enable Midstream Partners pays out 151.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BP Midstream Partners has increased its dividend for 2 consecutive years.

Summary

Enable Midstream Partners beats BP Midstream Partners on 8 of the 11 factors compared between the two stocks.

Enable Midstream Partners Company Profile

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.

BP Midstream Partners Company Profile

BP Midstream Partners LP is a master limited partnership formed by BP Pipelines (North America) Inc. The Company owns, operates, develops and acquires pipelines and other midstream assets. It owns one onshore crude oil pipeline system, one onshore refined products pipeline system, one onshore diluent pipeline system, interests in four offshore crude oil pipeline systems and an interest in one offshore natural gas pipeline system. Its onshore crude oil, refined products and diluent pipelines include BP2 Pipeline, River Rouge Pipeline and Diamondback Pipeline. Its offshore crude oil and natural gas pipelines include Mars System, Caesar Pipeline, Cleopatra Pipeline, Proteus Pipeline and Endymion Pipeline.

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