Enbridge Energy Partners (NYSE: EEP) and Andeavor Logistics (NYSE:ANDX) are both mid-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
This table compares Enbridge Energy Partners and Andeavor Logistics’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Enbridge Energy Partners
Valuation and Earnings
This table compares Enbridge Energy Partners and Andeavor Logistics’ revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|Enbridge Energy Partners
Andeavor Logistics has higher revenue and earnings than Enbridge Energy Partners. Enbridge Energy Partners is trading at a lower price-to-earnings ratio than Andeavor Logistics, indicating that it is currently the more affordable of the two stocks.
Enbridge Energy Partners pays an annual dividend of $1.40 per share and has a dividend yield of 13.2%. Andeavor Logistics pays an annual dividend of $4.06 per share and has a dividend yield of 9.4%. Enbridge Energy Partners pays out 175.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Andeavor Logistics pays out 161.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current recommendations for Enbridge Energy Partners and Andeavor Logistics, as reported by MarketBeat.com.
||Strong Buy Ratings
|Enbridge Energy Partners
Enbridge Energy Partners currently has a consensus price target of $12.22, suggesting a potential upside of 15.63%. Andeavor Logistics has a consensus price target of $52.25, suggesting a potential upside of 21.85%. Given Andeavor Logistics’ stronger consensus rating and higher probable upside, analysts plainly believe Andeavor Logistics is more favorable than Enbridge Energy Partners.
Volatility & Risk
Enbridge Energy Partners has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Andeavor Logistics has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
Institutional & Insider Ownership
39.5% of Enbridge Energy Partners shares are held by institutional investors. Comparatively, 38.5% of Andeavor Logistics shares are held by institutional investors. 0.2% of Andeavor Logistics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Andeavor Logistics beats Enbridge Energy Partners on 13 of the 16 factors compared between the two stocks.
Enbridge Energy Partners Company Profile
Enbridge Energy Partners, L.P. provides crude oil and liquid petroleum gathering, transportation, and storage services assets in the United States. The company's Lakehead system consists of approximately 4,212 miles of pipe and 74 pump stations located in the Great Lakes and Midwest regions of the United States. Its North Dakota crude oil system comprises approximately 660 miles, has 12 pump stations, delivery points, and storage facilities; and Mid-Continent system includes approximately 20 million barrels of storage capacity. The company serves integrated oil companies, independent oil producers, refiners, and marketers. Enbridge Energy Company, Inc. operates as a general partner of Enbridge Energy Partners, L.P. The company was formerly known as Lakehead Pipe Line Partners, L.P. and changed its name to Enbridge Energy Partners, L.P. in 2001. Enbridge Energy Partners, L.P. was founded in 1991 and is headquartered in Houston, Texas.
Andeavor Logistics Company Profile
Andeavor Logistics LP operates as a diversified midstream company in the United States. The Terminalling and Transportation segment comprises the Northwest Products Pipeline, including a regulated common carrier products pipeline running from Salt Lake City, Utah to Spokane, Washington and a jet fuel pipeline to the Salt Lake City International Airport; a regulated common carrier refined products pipeline system connecting its refinery to its terminals in Anchorage, Alaska; tankage and related equipment at the refinery; and crude oil and refined products terminals and storage facilities in the western, and southwest and midwestern U.S. This segment also consists of marine terminals in California and Washington; a rail-car unloading and petroleum coke handling facilities; marine terminals; a manifest rail facility; an asphalt trucking operation; a petroleum coke handling and storage facility; asphalt terminalling and processing services; and other pipelines, which transport products and crude oil from its refineries to nearby facilities in Salt Lake City and Los Angeles. The Gathering and Processing segment includes crude oil and natural gas pipeline gathering systems in the Bakken Shale/Williston Basin area of North Dakota and Montana; the Green River Basin, Uinta Basin, and Vermillion Basin in the states of Utah, Colorado, and Wyoming; the Delaware Basin in the Permian Basin area of West Texas and Southern New Mexico; and the Four Corners area of Northwestern New Mexico, as well as crude trucking operations, and gas processing and fractionation complexes. The Wholesale segment consists of bulk petroleum distribution facilities and a fleet of refined product delivery trucks. Tesoro Logistics GP, LLC operates as the general partner of the company. The company was formerly known as Tesoro Logistics LP and changed its name to Andeavor Logistics LP in August 2017. Andeavor Logistics LP was founded in 2010 and is headquartered in San Antonio, Texas.
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