American Midstream Partners (AMID) and Antero Midstream GP (AMGP) Financial Contrast

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for American Midstream Partners and Antero Midstream GP, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Midstream Partners 0 3 0 0 2.00
Antero Midstream GP 0 5 5 0 2.50

American Midstream Partners currently has a consensus target price of $13.67, suggesting a potential upside of 113.54%. Antero Midstream GP has a consensus target price of $22.70, suggesting a potential upside of 20.23%. Given American Midstream Partners’ higher probable upside, analysts plainly believe American Midstream Partners is more favorable than Antero Midstream GP.

Valuation and Earnings

This table compares American Midstream Partners and Antero Midstream GP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Midstream Partners $655.98 million 0.71 -$222.97 million N/A N/A
Antero Midstream GP $69.72 million 50.42 $2.32 million $0.03 629.33

Antero Midstream GP has lower revenue, but higher earnings than American Midstream Partners.

Institutional & Insider Ownership

42.9% of American Midstream Partners shares are owned by institutional investors. Comparatively, 74.8% of Antero Midstream GP shares are owned by institutional investors. 5.4% of American Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

American Midstream Partners has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Antero Midstream GP has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500.

Dividends

American Midstream Partners pays an annual dividend of $1.65 per share and has a dividend yield of 25.8%. Antero Midstream GP pays an annual dividend of $0.50 per share and has a dividend yield of 2.6%. Antero Midstream GP pays out 1,666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

Net Margins Return on Equity Return on Assets
American Midstream Partners -13.56% -57.25% -7.62%
Antero Midstream GP 32.91% 199.85% 102.79%

Summary

Antero Midstream GP beats American Midstream Partners on 9 of the 14 factors compared between the two stocks.

American Midstream Partners Company Profile

American Midstream Partners, LP provides midstream infrastructure that links the producers of natural gas, crude oil, natural gas liquids (NGLs), condensate, and specialty chemicals to various intermediate and end-use markets in the United States and Mexico. Its Gas Gathering and Processing Services segment offers services to producers of natural gas and crude oil, including transporting raw natural gas and crude oil from various receipt points through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs, and selling or delivering pipeline-quality natural gas and NGLs. The company's Liquid Pipelines and Services segment transports, purchases, and sells crude oil. Its Natural Gas Transportation Services segment transports and delivers natural gas from producing wells, receipt points, or pipeline interconnects for shippers, local distribution companies, and utilities, as well as industrial, commercial, and power generation customers. The company's Offshore Pipelines and Services segment gathers and transports natural gas from receipt points to other pipeline interconnects, onshore facilities, and other delivery points. Its Terminalling Services segment provides petroleum products, distillates, chemicals, and agricultural products storage services at its marine terminals for commodity brokers, refiners, and chemical manufacturers. As of May 10, 2018, the company owned approximately 5,100 miles of interstate and intrastate pipelines; gas processing plants and fractionation facilities; an offshore semisubmersible floating production system with nameplate processing capacity of 90 thousand barrels per day of crude oil and 220 million cubic feet per day of natural gas; and terminal sites with approximately 6.7 million barrels of storage capacity. American Midstream GP, LLC serves as the general partner of the company. The company was founded in 2009 and is headquartered in Houston, Texas.

Antero Midstream GP Company Profile

Antero Midstream GP LP owns, operates, and develops midstream energy assets in the Marcellus and Utica Shales in West Virginia and Ohio. Its assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants, and water handling and treatment assets, which provide midstream services to Antero Resources Corporation under long term fixed fee contracts. The company was formerly known as Antero Resources Midstream Management LLC and changed its name to Antero Midstream GP LP in May 2017. Antero Midstream GP LP was founded in 2013 and is based in Denver, Colorado.

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