Eagle Rock Energy Partners, L.P. (NASDAQ: EROC) and Energy Transfer Equity, L.P. (NYSE:ETE) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Dividends

Energy Transfer Equity, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 6.4%. Eagle Rock Energy Partners, L.P. does not pay a dividend. Energy Transfer Equity, L.P. pays out 144.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Transfer Equity, L.P. has increased its dividend for 4 consecutive years.

Valuation & Earnings

This table compares Eagle Rock Energy Partners, L.P. and Energy Transfer Equity, L.P.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Rock Energy Partners, L.P. N/A N/A N/A N/A N/A
Energy Transfer Equity, L.P. $42.15 billion 0.45 $5.53 billion $0.79 22.47

Energy Transfer Equity, L.P. has higher revenue and earnings than Eagle Rock Energy Partners, L.P..

Insider & Institutional Ownership

48.4% of Energy Transfer Equity, L.P. shares are owned by institutional investors. 3.3% of Energy Transfer Equity, L.P. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Eagle Rock Energy Partners, L.P. and Energy Transfer Equity, L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Rock Energy Partners, L.P. 0 0 0 0 N/A
Energy Transfer Equity, L.P. 0 4 10 0 2.71

Energy Transfer Equity, L.P. has a consensus price target of $20.50, indicating a potential upside of 15.49%. Given Energy Transfer Equity, L.P.’s higher possible upside, analysts clearly believe Energy Transfer Equity, L.P. is more favorable than Eagle Rock Energy Partners, L.P..

Profitability

This table compares Eagle Rock Energy Partners, L.P. and Energy Transfer Equity, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Rock Energy Partners, L.P. -107.85% -31.24% -15.37%
Energy Transfer Equity, L.P. 2.18% 3.79% 1.14%

Summary

Energy Transfer Equity, L.P. beats Eagle Rock Energy Partners, L.P. on 10 of the 11 factors compared between the two stocks.

Eagle Rock Energy Partners, L.P. Company Profile

Eagle Rock Energy Partners, L.P. is a limited partnership engaged in developing and producing oil and natural gas properties. The Company’s interests include operated and non-operated wells located in four oil and gas producing regions: The Mid-Continent region consists of operated and non-operated properties in the Golden Trend field, Cana (Woodford) shale play, Verden field and other fields located in the Anadarko Basin of western Oklahoma, the Mansfield field and other fields in the Arkoma Basin of Arkansas and Oklahoma, and various fields in the Texas Panhandle; The Alabama region includes the Big Escambia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama; The Permian region contains various fields, including Ward South and Ward-Estes North located in Ward, Pecos and Crane Counties, Texas, and East Texas/South Texas/Mississippi. These working interest properties included over 561 gross operated productive wells and over 1,217 gross non-operated wells.

Energy Transfer Equity, L.P. Company Profile

Energy Transfer Equity, L.P. (ETE) owns equity interests in Energy Transfer Partners, L.P. (ETP) and Sunoco LP, which are engaged in diversified energy-related services. The Company’s segments include Investment in ETP, including the consolidated operations of ETP; Investment in Sunoco LP, including the consolidated operations of Sunoco LP; Investment in Lake Charles LNG, including the operations of Lake Charles LNG, and Corporate and Other. Its Investment in ETP segment includes the ETP’s operations, which include intrastate transportation and storage operations; interstate transportation and storage operations; midstream operations; liquids transportation and services operations; ETP’s Investment in Sunoco Logistics; Retail Marketing operations, and ETP’s other operations and Investments. The Investment in Sunoco LP segment includes wholesale operations and retail operations. Lake Charles LNG owns a LNG import terminal and regasification facility located on Louisiana’s Gulf Coast.

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