Contrasting EnLink Midstream Partners (ENLK) & Williams Partners (WPZ)

EnLink Midstream Partners (NYSE:ENLK) and Williams Partners (NYSE:WPZ) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Dividends

EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 12.9%. Williams Partners pays an annual dividend of $2.52 per share. EnLink Midstream Partners pays out 5,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares EnLink Midstream Partners and Williams Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnLink Midstream Partners 3.76% 8.27% 2.96%
Williams Partners N/A N/A N/A

Institutional & Insider Ownership

42.8% of EnLink Midstream Partners shares are held by institutional investors. Comparatively, 22.3% of Williams Partners shares are held by institutional investors. 0.2% of EnLink Midstream Partners shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EnLink Midstream Partners and Williams Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnLink Midstream Partners 0 13 2 0 2.13
Williams Partners 0 5 4 0 2.44

EnLink Midstream Partners currently has a consensus price target of $16.92, suggesting a potential upside of 40.44%. Williams Partners has a consensus price target of $43.50, suggesting a potential upside of ∞. Given Williams Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Williams Partners is more favorable than EnLink Midstream Partners.

Earnings and Valuation

This table compares EnLink Midstream Partners and Williams Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EnLink Midstream Partners $5.74 billion 0.74 $148.90 million $0.03 401.67
Williams Partners N/A N/A N/A N/A N/A

EnLink Midstream Partners has higher revenue and earnings than Williams Partners.

Summary

EnLink Midstream Partners beats Williams Partners on 7 of the 11 factors compared between the two stocks.

About EnLink Midstream Partners

EnLink Midstream Partners, LP, through its subsidiary, EnLink Midstream Operating, LP, provides midstream energy services. It operates through Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate segments. The company provides gathering, transmission, processing, fractionation, storage, condensate stabilization, brine, and marketing services to producers of natural gas, natural gas liquids (NGL), crude oil, and condensate. It operates processing plants that remove NGLs from the natural gas stream that is transported to the processing plants by its own gathering systems or by third-party pipelines; and purchases natural gas and NGLs from producers and other supply sources, and sells that natural gas to utilities, industrial consumers, other marketers, and pipelines. The company also fractionates NGLs into purity products, such as ethane, propane, iso-butane, butane, and natural gasoline. It operates approximately 11,000 miles of pipelines, 20 natural gas processing plants, 7 fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, and brine disposal wells, as well as a crude oil trucking fleet. EnLink Midstream GP, LLC serves as the general partner of the company. The company was formerly known as Crosstex Energy L.P. and changed its name to EnLink Midstream Partners, LP in March 2014. EnLink Midstream Partners, LP was founded in 1992 and is headquartered in Dallas, Texas.

About Williams Partners

Williams Partners L.P. operates as an energy infrastructure company. It operates through Northeast G&P, Atlantic-Gulf, and West segments. The Northeast G&P segment engages in natural gas gathering, compression, processing, and NGL fractionation businesses in the Marcellus and Utica shale regions in Pennsylvania, West Virginia, New York, and Ohio. The Atlantic-Gulf segment operates Transco interstate natural gas pipeline that extends from the Gulf of Mexico to the eastern seaboard; and natural gas gathering, processing and treating, crude oil production handling, and NGL fractionation assets within the onshore, offshore shelf, and deep-water areas in and around the Gulf Coast states of Texas, Louisiana, Mississippi, and Alabama. This segment also operates various petrochemical and feedstock pipelines in the Gulf Coast region. The West segment operates Northwest Pipeline, an interstate natural gas pipeline, as well as natural gas gathering, processing, and treating assets in Colorado, New Mexico, Wyoming, Louisiana, Texas, Arkansas, and Oklahoma. This segment also operates NGL and natural gas marketing business, and storage facilities. The company owns and operates 33,000 miles of pipelines system providing natural gas for clean-power generation, heating, and industrial use. WPZ GP LLC serves as the general partner of the company. The company was founded in 2005 and is based in Tulsa, Oklahoma. Williams Partners L.P. is a subsidiary of Williams Gas Pipeline Company, LLC.

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