Head-To-Head Review: Eca Marcellus Trust I (ECT) versus Hess Midstream Partners (HESM)

Eca Marcellus Trust I (NYSE:ECT) and Hess Midstream Partners (NYSE:HESM) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Eca Marcellus Trust I pays an annual dividend of $0.26 per share and has a dividend yield of 14.6%. Hess Midstream Partners pays an annual dividend of $1.38 per share and has a dividend yield of 5.9%.

Analyst Recommendations

This is a summary of current recommendations and price targets for Eca Marcellus Trust I and Hess Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eca Marcellus Trust I 0 0 0 0 N/A
Hess Midstream Partners 0 0 5 0 3.00

Hess Midstream Partners has a consensus price target of $27.40, indicating a potential upside of 17.85%. Given Hess Midstream Partners’ higher probable upside, analysts clearly believe Hess Midstream Partners is more favorable than Eca Marcellus Trust I.

Valuation & Earnings

This table compares Eca Marcellus Trust I and Hess Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eca Marcellus Trust I $6.88 million 4.55 $5.73 million N/A N/A
Hess Midstream Partners $565.80 million 1.12 $284.80 million N/A N/A

Hess Midstream Partners has higher revenue and earnings than Eca Marcellus Trust I.

Profitability

This table compares Eca Marcellus Trust I and Hess Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eca Marcellus Trust I 79.50% 9.19% 8.98%
Hess Midstream Partners 10.34% 2.48% 2.40%

Risk and Volatility

Eca Marcellus Trust I has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Hess Midstream Partners has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Insider and Institutional Ownership

3.0% of Eca Marcellus Trust I shares are held by institutional investors. Comparatively, 51.3% of Hess Midstream Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Hess Midstream Partners beats Eca Marcellus Trust I on 7 of the 12 factors compared between the two stocks.

Eca Marcellus Trust I Company Profile

ECA Marcellus Trust I owns royalty interests in producing and development horizontal natural gas wells for Energy Corporation of America (ECA). The company owns royalty interests in 14 producing wells and 40 development wells. Its royalty interests in the producing wells allow the company to receive 90% of the proceeds from the sale of production of natural gas attributable to ECA's interest in the producing wells; and 50% of the proceeds from the sale of production of natural gas attributable to ECA's interest in the development wells. ECA Marcellus Trust I was founded in 2010 and is based in Houston, Texas.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP owns, operates, develops, and acquires midstream assets to provide services to Hess and third-party customers in the United States. It operates through three segments: Gathering, Processing and Storage, and Terminaling and Export. The gathering segment include natural gas and crude oil gathering and compression systems located primarily in McKenzie, Williams and Mountrail Counties, and North Dakota. Its gathering systems consists of approximately 1,200 miles of high and low pressure natural gas and NGL gathering pipelines with capacity of up to 345 MMcf/d, including an aggregate compression capacity of 174 MMcf/d; and crude oil gathering system comprises approximately 400 miles of crude oil gathering pipelines with capacity of up to 161 MBbl/d. The Processing and Storage segment consists of Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; and Mentor storage terminal a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; and crude oil rail cars, as well as Johnson's Corner Header System. The company was founded in 2014 and is based in Houston, Texas.

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