Head to Head Comparison: CNX Midstream Partners (CNXM) & Enterprise Products Partners (EPD)

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CNX Midstream Partners (NYSE: EPD) and Enterprise Products Partners (NYSE:EPD) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Risk and Volatility

CNX Midstream Partners has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Enterprise Products Partners has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

30.1% of CNX Midstream Partners shares are owned by institutional investors. Comparatively, 36.5% of Enterprise Products Partners shares are owned by institutional investors. 37.5% of Enterprise Products Partners shares are owned by company insiders. 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.

Profitability

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

Net Margins Return on Equity Return on Assets
CNX Midstream Partners 46.16% 19.10% 12.51%
Enterprise Products Partners 8.95% 14.42% 6.00%

Dividends

CNX Midstream Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.8%. Enterprise Products Partners pays an annual dividend of $1.72 per share and has a dividend yield of 5.9%. CNX Midstream Partners pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enterprise Products Partners pays out 130.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enterprise Products Partners has increased its dividend for 19 consecutive years. CNX Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CNX Midstream Partners and Enterprise Products Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNX Midstream Partners 0 2 4 0 2.67
Enterprise Products Partners 0 0 17 0 3.00

CNX Midstream Partners currently has a consensus target price of $24.00, indicating a potential upside of 21.15%. Enterprise Products Partners has a consensus target price of $32.33, indicating a potential upside of 11.57%. Given CNX Midstream Partners’ higher possible upside, equities research analysts clearly believe CNX Midstream Partners is more favorable than Enterprise Products Partners.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNX Midstream Partners $233.85 million 5.39 $114.99 million $1.72 11.52
Enterprise Products Partners $29.24 billion 2.14 $2.80 billion $1.32 21.95

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

Summary

CNX Midstream Partners beats Enterprise Products Partners on 9 of the 17 factors compared between the two stocks.

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.

Enterprise Products Partners Company Profile

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services, as well as NGL export docks and related services. It operates approximately 19,600 miles of NGL pipelines; NGL and related product storage facilities; 14 NGL fractionators; and a liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,800 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 495 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,700 miles of natural gas pipeline systems to gather and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It leases underground salt dome natural gas storage facilities in Texas and Louisiana; owns an underground salt dome storage cavern in Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related activities, including 800 miles of pipelines; butane isomerization complex, associated deisobutanizer units, and related pipeline assets; and octane enhancement and high purity isobutylene production facilities. It also operates approximately 4,100 miles of refined products pipelines; and terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.

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