Financial Survey: Rice Midstream Partners (RMP) and TC PIPELINES LP Common Stock (TRP)

Rice Midstream Partners (NYSE: RMP) and TC PIPELINES LP Common Stock (NYSE:TRP) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

Rice Midstream Partners has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, TC PIPELINES LP Common Stock has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Rice Midstream Partners and TC PIPELINES LP Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rice Midstream Partners 59.40% 10.01% 8.61%
TC PIPELINES LP Common Stock 23.98% 12.85% 3.39%

Earnings & Valuation

This table compares Rice Midstream Partners and TC PIPELINES LP Common Stock’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rice Midstream Partners $294.69 million 6.43 $177.97 million N/A N/A
TC PIPELINES LP Common Stock $10.37 billion 3.70 $2.44 billion $2.38 18.07

TC PIPELINES LP Common Stock has higher revenue and earnings than Rice Midstream Partners.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rice Midstream Partners and TC PIPELINES LP Common Stock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rice Midstream Partners 0 13 2 0 2.13
TC PIPELINES LP Common Stock 0 1 8 0 2.89

Rice Midstream Partners currently has a consensus price target of $22.00, indicating a potential upside of 18.73%. TC PIPELINES LP Common Stock has a consensus price target of $62.33, indicating a potential upside of 44.96%. Given TC PIPELINES LP Common Stock’s stronger consensus rating and higher probable upside, analysts plainly believe TC PIPELINES LP Common Stock is more favorable than Rice Midstream Partners.

Institutional & Insider Ownership

75.1% of Rice Midstream Partners shares are held by institutional investors. Comparatively, 60.6% of TC PIPELINES LP Common Stock shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Rice Midstream Partners pays an annual dividend of $1.22 per share and has a dividend yield of 6.6%. TC PIPELINES LP Common Stock pays an annual dividend of $2.14 per share and has a dividend yield of 5.0%. TC PIPELINES LP Common Stock pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rice Midstream Partners has raised its dividend for 2 consecutive years and TC PIPELINES LP Common Stock has raised its dividend for 2 consecutive years.

About Rice Midstream Partners

Rice Midstream Partners LP owns, operates, develops, and acquires midstream assets in the Appalachian Basin. It operates in two segments, Gathering and Compression, and Water Services. Its natural gas gathering and compression assets consist of natural gas gathering and compression systems that serve producers in the dry gas core of the Marcellus Shale in southwestern Pennsylvania. The company also provides water services to support well completion activities, as well as to collect and recycle or dispose of flowback and produced water in Washington and Greene counties, Pennsylvania; and Belmont County, Ohio. Rice Midstream Management LLC serves as the general partner of Rice Midstream Partners LP. The company was founded in 2014 and is headquartered in Pittsburgh, Pennsylvania.

About TC PIPELINES LP Common Stock

TransCanada Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Energy segments. The company transports natural gas to local distribution companies, power generation and individual facilities, interconnecting pipelines, and other businesses. It owns and operates a network of 80,800 km of wholly-owned natural gas pipelines and 11,100 km of partially-owned natural gas pipelines; and regulated natural gas storage facilities with a total working gas capacity of 535 Bcf. The company also owns and operates Keystone pipeline system of 4,324 km for the transportation of crude oil from Hardisty, Alberta to Wood River and Patoka in Illinois; Cushing, Oklahoma; and the U.S. Gulf Coast. In addition, it operates terminal and pipeline facilities to transport crude oil from the market hub at Cushing, Oklahoma to the U.S. Gulf Coast refining markets. Further, the company owns, controls, and develops approximately 7,000 MW of generation capacity powered by natural gas, nuclear, and wind assets; and owns and operates regulated and unregulated natural gas storage facilities. It also operates 11 power generation facilities and 118 Bcf of non-regulated natural gas storage facilities in Alberta, Ontario, Québec, and New Brunswick in Canada, as well as in Arizona. TransCanada Corporation was founded in 1951 and is headquartered in Calgary, Canada.

Receive News & Ratings for Rice Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rice Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply