Financial Analysis: Energy Transfer Partners (ETP) versus CNX Midstream Partners (CNXM)

Energy Transfer Partners (NYSE:ETP) and CNX Midstream Partners (NYSE:CNXM) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for Energy Transfer Partners and CNX Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energy Transfer Partners 0 0 0 0 N/A
CNX Midstream Partners 0 3 3 0 2.50

CNX Midstream Partners has a consensus price target of $22.33, suggesting a potential upside of 52.86%. Given CNX Midstream Partners’ higher possible upside, analysts clearly believe CNX Midstream Partners is more favorable than Energy Transfer Partners.

Institutional and Insider Ownership

53.1% of CNX Midstream Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Energy Transfer Partners N/A N/A N/A $0.97 22.13
CNX Midstream Partners $256.67 million 3.62 $134.04 million $1.89 7.73

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

Profitability

This table compares Energy Transfer Partners and CNX Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energy Transfer Partners N/A N/A N/A
CNX Midstream Partners 52.22% 32.52% 15.08%

Dividends

Energy Transfer Partners pays an annual dividend of $2.26 per share and has a dividend yield of 10.5%. CNX Midstream Partners pays an annual dividend of $1.44 per share and has a dividend yield of 9.9%. Energy Transfer Partners pays out 233.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CNX Midstream Partners pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

CNX Midstream Partners beats Energy Transfer Partners on 9 of the 11 factors compared between the two stocks.

Energy Transfer Partners Company Profile

Energy Transfer Partners, L.P. engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States. The company's Intrastate Transportation and Storage segment transports natural gas from various natural gas producing areas through connections with other pipeline systems, as well as through its ET Fuel System and HPL System. This segment owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas. Its Interstate Transportation and Storage segment provides natural gas transportation and storage services; owns and operates approximately 11,800 miles of interstate natural gas pipelines; and has interests in various natural gas pipelines. The company's Midstream segment gathers, compresses, treats, blends, processes, and markets natural gas. It owns and operates natural gas and natural gas liquids (NGL) gathering pipelines, natural gas processing plants, natural gas treating facilities, and natural gas conditioning facilities. The company's NGL and Refined Products Transportation and Services segment transports mixed NGLs and other hydrocarbons; stores mixed NGLs, NGL products, and petrochemical products; and separates mixed NGL streams into purity products. This segment owns and operates various NGL pipelines, NGL and propane fractionation facilities, and NGL storage facilities. Its Crude Oil Transportation and Services segment engages in the transportation, terminalling, and acquisition and marketing of crude oil; and operates crude oil trunk and gathering pipelines. The company's All Other segment engages in the natural gas compression equipment business; provides natural gas compression equipment and compression services; manages coal and natural resources property, sells standing timber, and leases coal-related infrastructure facilities; and generates electrical power. Energy Transfer Partners, L.P. was founded in 1995 and is based in Dallas, Texas.

CNX Midstream Partners Company Profile

CNX Midstream Partners LP owns, operates, develops, and acquires natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. The company operates through two segments, Anchor Systems and Additional Systems. As of December 31, 2018, the company operated 14 compression and dehydration facilities. It also operates condensate handling facilities with handling capacities of 2,500 barrels per day in Majorsville, Pennsylvania, as well as Shirley, West Virginia that provide condensate gathering, collection, separation, and stabilization services. CNX Midstream GP LLC serves as a general partner of the company. The company was formerly known as CONE Midstream Partners LP and changed its name to CNX Midstream Partners LP in January 2018. CNX Midstream Partners LP was founded in 2014 and is based in Canonsburg, Pennsylvania.

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