Denbury Resources (NYSE:DNR) and CNX Midstream Partners (CNXM) Head-To-Head Survey

Denbury Resources (NYSE: DNR) and CNX Midstream Partners (NYSE:CNXM) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

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81.0% of Denbury Resources shares are owned by institutional investors. Comparatively, 19.8% of CNX Midstream Partners shares are owned by institutional investors. 1.2% of Denbury Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

CNX Midstream Partners pays an annual dividend of $1.25 per share and has a dividend yield of 7.1%. Denbury Resources does not pay a dividend. CNX Midstream Partners pays out 72.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for Denbury Resources and CNX Midstream Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Denbury Resources 1 6 1 0 2.00
CNX Midstream Partners 0 3 5 0 2.63

Denbury Resources currently has a consensus price target of $1.75, suggesting a potential downside of 41.08%. CNX Midstream Partners has a consensus price target of $23.63, suggesting a potential upside of 33.70%. Given CNX Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe CNX Midstream Partners is more favorable than Denbury Resources.

Risk & Volatility

Denbury Resources has a beta of 3.15, suggesting that its share price is 215% more volatile than the S&P 500. Comparatively, CNX Midstream Partners has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Valuation & Earnings

This table compares Denbury Resources and CNX Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Denbury Resources $1.13 billion 1.06 $163.15 million $0.14 21.21
CNX Midstream Partners $233.85 million 4.80 $114.99 million $1.72 10.27

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

Profitability

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

Net Margins Return on Equity Return on Assets
Denbury Resources 14.44% 10.20% 1.26%
CNX Midstream Partners 48.53% 15.38% 12.36%

Summary

CNX Midstream Partners beats Denbury Resources on 9 of the 16 factors compared between the two stocks.

Denbury Resources Company Profile

Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. As of December 31, 2017, the company had 259.7 million barrels of oil equivalent of estimated proved oil and natural gas reserves. Denbury Resources Inc. was founded in 1951 and is headquartered in Plano, 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. As of December 31, 2017, the company operates 18 compression and dehydration facilities. It also operates condensate handling facilities with handling capacities of 2,500 Bbl/d each in Majorsville, Pennsylvania, as well as Moundsville, 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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