Head to Head Contrast: Noble Midstream Partners (NBLX) & Blueknight Energy Partners LP Common Stock (BKEP)

Noble Midstream Partners (NYSE: NBLX) and Blueknight Energy Partners LP Common Stock (NASDAQ:BKEP) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk & Volatility

Noble Midstream Partners has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Blueknight Energy Partners LP Common Stock has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Dividends

Noble Midstream Partners pays an annual dividend of $2.04 per share and has a dividend yield of 3.9%. Blueknight Energy Partners LP Common Stock pays an annual dividend of $0.58 per share and has a dividend yield of 16.7%. Noble Midstream Partners pays out 49.8% of its earnings in the form of a dividend. Blueknight Energy Partners LP Common Stock pays out -644.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Blueknight Energy Partners LP Common Stock is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Noble Midstream Partners and Blueknight Energy Partners 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
Noble Midstream Partners $239.28 million 8.57 $140.57 million $4.10 12.60
Blueknight Energy Partners LP Common Stock $181.94 million 0.77 $20.04 million ($0.09) -38.61

Noble Midstream Partners has higher revenue and earnings than Blueknight Energy Partners LP Common Stock. Blueknight Energy Partners LP Common Stock is trading at a lower price-to-earnings ratio than Noble Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Noble Midstream Partners and Blueknight Energy Partners LP Common Stock, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble Midstream Partners 0 0 7 0 3.00
Blueknight Energy Partners LP Common Stock 0 2 1 0 2.33

Noble Midstream Partners presently has a consensus price target of $58.14, indicating a potential upside of 12.51%. Blueknight Energy Partners LP Common Stock has a consensus price target of $5.67, indicating a potential upside of 63.07%. Given Blueknight Energy Partners LP Common Stock’s higher probable upside, analysts clearly believe Blueknight Energy Partners LP Common Stock is more favorable than Noble Midstream Partners.

Profitability

This table compares Noble Midstream Partners and Blueknight Energy Partners LP Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble Midstream Partners 53.98% 26.99% 16.52%
Blueknight Energy Partners LP Common Stock 8.04% -6.79% 4.86%

Institutional and Insider Ownership

54.7% of Noble Midstream Partners shares are owned by institutional investors. Comparatively, 45.7% of Blueknight Energy Partners LP Common Stock shares are owned by institutional investors. 1.7% of Blueknight Energy Partners LP Common Stock shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Noble Midstream Partners beats Blueknight Energy Partners LP Common Stock on 12 of the 16 factors compared between the two stocks.

About Noble Midstream Partners

Noble Midstream Partners LP owns, operates, develops, and acquires midstream infrastructure assets in the United States. The company provides crude oil, natural gas, and water-related midstream services. The company operates in the Denver-Julesburg Basin in Colorado and the Delaware Basin in Texas. The company was founded in 2014 and is based in Houston, Texas. Noble Midstream Partners LP is a subsidiary of Noble Energy, Inc.

About Blueknight Energy Partners LP Common Stock

Blueknight Energy Partners, L.P. provides integrated terminalling, gathering, and transportation services for companies engaged in the production, distribution, and marketing of liquid asphalt and crude oil products in the United States. The company's Asphalt Terminalling Services segment offers asphalt terminalling services, including storage, blending, processing, and throughput services for asphalt product and residual fuel oil. As of March 7, 2018, this segment had 56 terminals located in 26 states. Its Crude Oil Terminalling Services segment provides terminalling services, including storage, blending, processing, and throughput services for crude oil. This segment owns and operates 34 crude oil storage tanks with approximately 6.6 million barrels of storage capacity. The company's Crude Oil Pipeline Services segment owns and operates crude oil transportation system with a combined length of approximately 655 miles; and purchases crude oil from production leases in Oklahoma and markets those barrels at the Cushing Interchange. Its Crude Oil Trucking and Producer Field Services segment offers crude oil producer field services comprising gathering condensates from natural gas companies to hauling produced water to disposal wells; and producer field services, such as gas gathering pipeline maintenance, hot and cold fresh water delivery, chemical and downhole well treatment, wet oil cleanup, and separation facilities building and maintenance services. This segment owns or leases approximately 65 tanker trucks; and operates a producer service fleet of approximately 85 trucks. Blueknight Energy Partners G.P., L.L.C. operates as a general partner of the company. The company was formerly known as SemGroup Energy Partners, L.P. and changed its name to Blueknight Energy Partners, L.P. in December 2009. Blueknight Energy Partners, L.P. was founded in 2007 and is headquartered in Oklahoma City, Oklahoma.

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