Analyzing Williams Partners (NYSE:WPZ) and Harvest Natural Resources (HNR)

Williams Partners (NYSE: WPZ) and Harvest Natural Resources (NYSE:HNR) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Dividends

Williams Partners pays an annual dividend of $2.40 per share and has a dividend yield of 5.6%. Harvest Natural Resources does not pay a dividend. Williams Partners pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current recommendations for Williams Partners and Harvest Natural Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Williams Partners 0 2 10 0 2.83
Harvest Natural Resources 0 0 0 0 N/A

Williams Partners presently has a consensus price target of $45.27, indicating a potential upside of 4.82%. Given Williams Partners’ higher probable upside, analysts plainly believe Williams Partners is more favorable than Harvest Natural Resources.

Institutional & Insider Ownership

22.5% of Williams Partners shares are owned by institutional investors. Comparatively, 53.9% of Harvest Natural Resources shares are owned by institutional investors. 27.2% of Harvest Natural Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Williams Partners and Harvest Natural Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Williams Partners 17.02% 5.55% 2.90%
Harvest Natural Resources N/A -25.98% -17.70%

Earnings & Valuation

This table compares Williams Partners and Harvest Natural Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Williams Partners $7.49 billion 5.61 $431.00 million $1.40 30.85
Harvest Natural Resources N/A N/A N/A ($1.53) -4.33

Williams Partners has higher revenue and earnings than Harvest Natural Resources. Harvest Natural Resources is trading at a lower price-to-earnings ratio than Williams Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Williams Partners beats Harvest Natural Resources on 9 of the 12 factors compared between the two stocks.

About Williams Partners

Williams Partners L.P. is an energy infrastructure company. The Company has operations across the natural gas value chain from gathering, processing, and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene, and other olefins. It operates through its Northeast G&P, Atlantic-Gulf, West segment. Under the Northeast G&P segment, it owns and operates fractionation facilities at Moundsville, de-ethanization and condensate facilities at its Oak Grove processing plant. The Atlantic Gulf segment includes the Company’s interstate natural gas pipeline, Transcontinental Gas Pipe Line Company, LLC. The West segment includes its interstate natural gas pipeline, Northwest Pipeline, and natural gas gathering processing and treating operations.

About Harvest Natural Resources

Harvest Natural Resources, Inc. (Harvest) is in the process of dissolution and winding up. The Company was previously a petroleum exploration and production company. The Company was engaged in acquiring exploration, development and producing properties in geological basins active hydrocarbon systems.

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