Enlink Midstream (XTXI) and Alon USA Partners (ALDW) Financial Contrast

Enlink Midstream (NASDAQ: XTXI) and Alon USA Partners (NYSE:ALDW) are both small-cap companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Dividends

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Alon USA Partners pays an annual dividend of $0.84 per share and has a dividend yield of 5.1%. Enlink Midstream does not pay a dividend. Alon USA Partners has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Enlink Midstream and Alon USA Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enlink Midstream N/A N/A N/A N/A N/A
Alon USA Partners $1.81 billion 0.57 -$4.40 million N/A N/A

Enlink Midstream has higher earnings, but lower revenue than Alon USA Partners.

Analyst Ratings

This is a summary of current ratings for Enlink Midstream and Alon USA Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enlink Midstream 0 0 0 0 N/A
Alon USA Partners 0 3 3 0 2.50

Alon USA Partners has a consensus price target of $12.25, suggesting a potential downside of 25.98%. Given Alon USA Partners’ higher possible upside, analysts clearly believe Alon USA Partners is more favorable than Enlink Midstream.

Profitability

This table compares Enlink Midstream and Alon USA Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enlink Midstream N/A N/A N/A
Alon USA Partners 5.90% 30.17% 10.26%

Insider and Institutional Ownership

5.3% of Alon USA Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Alon USA Partners beats Enlink Midstream on 9 of the 9 factors compared between the two stocks.

Enlink Midstream Company Profile

Enlink Midstream Partners, L.P. is engaged, through its subsidiaries, in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs). The Company connects the wells of natural gas producers in the geographic areas of its gathering systems in order to gather for a fee or purchase the gas production, processes natural gas for the removal of NGLs, transports natural gas and NGLs and ultimately provides natural gas and NGLs to a variety of markets. In addition, it purchases natural gas and NGLs from producers not connected to its gathering systems for resale and markets natural gas and NGLs on behalf of producers for a fee. Its partnership interests consist of 19.7% limited partner interest in Crosstex Energy, L.P. (the Partnership), as of December 31, 2012, and 100% ownership interest in Crosstex Energy GP, LLC, the general partner of the Partnership, which owns a 2.0% general partner interest and all of the distribution rights in the Partnership.

Alon USA Partners Company Profile

Alon USA Partners, LP (Alon) is engaged principally in the business of operating a crude oil refinery in Big Spring, Texas. The Company had a crude oil throughput capacity of 73,000 barrels per day, which the Company referred to as its Big Spring refinery, as of December 31, 2016. The Company refines crude oil into finished products, which the Company markets primarily in Central and West Texas, Oklahoma, New Mexico and Arizona through its integrated wholesale distribution network to retail convenience stores and other third-party distributors. Its Big Spring refinery is located on 1,306 acres in the Permian Basin in West Texas. Major processes at its Big Spring refinery include fluid catalytic cracking, naphtha reforming, vacuum distillation, hydrotreating, aromatic extraction and alkylation. The Company is managed and operated by Alon USA Partners GP, LLC (General Partner), an indirect subsidiary of Alon USA Energy, Inc. (Alon Energy), which is its parent company.

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