Critical Review: EnLink Midstream Partners (ENLK) & Antero Midstream GP (AMGP)

EnLink Midstream Partners (NYSE: ENLK) and Antero Midstream GP (NYSE:AMGP) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
EnLink Midstream Partners 2.51% 3.43% 1.47%
Antero Midstream GP 4.58% 22.05% 11.93%

Analyst Ratings

This is a summary of recent ratings and recommmendations for EnLink Midstream Partners and Antero Midstream GP, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnLink Midstream Partners 0 10 5 0 2.33
Antero Midstream GP 0 5 11 1 2.76

EnLink Midstream Partners currently has a consensus target price of $16.62, suggesting a potential upside of 18.51%. Antero Midstream GP has a consensus target price of $24.53, suggesting a potential upside of 45.58%. Given Antero Midstream GP’s stronger consensus rating and higher probable upside, analysts plainly believe Antero Midstream GP is more favorable than EnLink Midstream Partners.

Dividends

EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 11.1%. Antero Midstream GP pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. EnLink Midstream Partners pays out 5,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Antero Midstream GP pays out 1,000.0% 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 & Earnings

This table compares EnLink Midstream Partners and Antero Midstream GP’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EnLink Midstream Partners $5.74 billion 0.85 $148.90 million $0.03 467.33
Antero Midstream GP $69.72 million 45.00 $2.32 million $0.03 561.67

EnLink Midstream Partners has higher revenue and earnings than Antero Midstream GP. EnLink Midstream Partners is trading at a lower price-to-earnings ratio than Antero Midstream GP, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

41.2% of EnLink Midstream Partners shares are owned by institutional investors. Comparatively, 73.0% of Antero Midstream GP shares are owned by institutional investors. 0.2% of EnLink Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Antero Midstream GP beats EnLink Midstream Partners on 10 of the 14 factors compared between the two stocks.

EnLink Midstream Partners Company Profile

EnLink Midstream Partners LP provides integrated midstream services across natural gas, crude oil, condensate, and NGL commodities. It focuses on gathering, transmission, processing, fractionation, storage, condensate stabilization, brine services and marketing, to producers of natural gas, NGLs, crude oil and condensate. The company was founded on July 12, 2002 and is headquartered in Dallas, TX.

Antero Midstream GP Company Profile

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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