Head to Head Contrast: EQT Midstream Partners (EQM) and Antero Midstream Partners (AM)

EQT Midstream Partners (NYSE:EQM) and Antero Midstream Partners (NYSE:AM) are both mid-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Dividends

EQT Midstream Partners pays an annual dividend of $4.46 per share and has a dividend yield of 9.4%. Antero Midstream Partners pays an annual dividend of $1.76 per share and has a dividend yield of 6.2%. EQT Midstream Partners pays out 85.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Antero Midstream Partners pays out 125.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT Midstream Partners has increased its dividend for 5 consecutive years and Antero Midstream Partners has increased its dividend for 2 consecutive years. EQT Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

EQT Midstream Partners has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Antero Midstream Partners has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
EQT Midstream Partners 60.71% 22.30% 11.49%
Antero Midstream Partners 32.54% 21.74% 10.41%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EQT Midstream Partners $834.10 million 6.90 $571.90 million $5.19 9.10
Antero Midstream Partners $772.50 million 6.85 $307.31 million $1.40 20.20

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for EQT Midstream Partners and Antero Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT Midstream Partners 0 5 9 0 2.64
Antero Midstream Partners 0 6 4 0 2.40

EQT Midstream Partners presently has a consensus target price of $61.92, indicating a potential upside of 31.14%. Antero Midstream Partners has a consensus target price of $34.72, indicating a potential upside of 22.78%. Given EQT Midstream Partners’ stronger consensus rating and higher possible upside, equities analysts clearly believe EQT Midstream Partners is more favorable than Antero Midstream Partners.

Institutional and Insider Ownership

69.5% of EQT Midstream Partners shares are held by institutional investors. Comparatively, 47.5% of Antero Midstream Partners shares are held by institutional investors. 7.9% of Antero Midstream Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

EQT Midstream Partners beats Antero Midstream Partners on 14 of the 17 factors compared between the two stocks.

EQT Midstream Partners Company Profile

EQT Midstream Partners, LP provides natural gas gathering, transmission, and storage services in Pennsylvania, West Virginia, and Ohio. The company owns, operates, acquires, and develops midstream assets in the Appalachian Basin. The company also owned approximately 300 miles of high pressure gathering lines and 1,500 miles of federal energy regulatory commission (FERC) regulated low pressure gathering lines; and approximately 950 miles of FERC regulated interstate pipelines. It serves local distribution companies, marketers, producers, and commercial and industrial users. EQT Midstream Services, LLC serves as the general partner of the company. EQT Midstream Partners, LP is headquartered in Pittsburgh, Pennsylvania.

Antero Midstream Partners Company Profile

Antero Midstream Partners LP owns, operates, and develops midstream energy assets. The company operates in two segments, Gathering and Processing, and Water Handling and Treatment. Its assets include 8-, 12-, 16-, 20-, 24-, and 30-inch high and low pressure gathering pipelines, compressor stations, and processing and fractionation plants that collect and process natural gas, natural gas liquids, and crude oil from wells in the Marcellus Shale in West Virginia and the Utica Shale in Ohio; and water handling and treatment assets, which comprise two independent fresh water delivery systems that deliver fresh water from the Ohio River and several regional waterways, as well as wastewater handling services for well completion operations. As of December 31, 2017, the company's Marcellus and Utica Shale water handling and treatment systems included 190 miles and 83 miles of pipelines, respectively; and gathering systems comprised 242 miles and 123 miles of pipelines, respectively. Antero Midstream Partners GP LLC serves as the general partner of the company. The company was founded in 2013 and is headquartered in Denver, Colorado. Antero Midstream Partners LP is a subsidiary of Antero Resources Corporation.

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