Hess Midstream Partners (NASDAQ: HESM) and Rice Midstream Partners (NYSE:RMP) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Hess Midstream Partners and Rice Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hess Midstream Partners 49.24% 3.23% 10.50%
Rice Midstream Partners 58.22% 12.71% 10.92%

Dividends

Rice Midstream Partners pays an annual dividend of $1.08 per share and has a dividend yield of 5.1%. Hess Midstream Partners does not pay a dividend. Rice Midstream Partners pays out 70.1% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Hess Midstream Partners and Rice Midstream Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hess Midstream Partners $540.50 million 2.15 $357.30 million N/A N/A
Rice Midstream Partners $235.66 million 9.25 $180.22 million $1.54 13.84

Hess Midstream Partners has higher revenue and earnings than Rice Midstream Partners.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hess Midstream Partners and Rice Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hess Midstream Partners 0 0 5 0 3.00
Rice Midstream Partners 0 12 3 0 2.20

Hess Midstream Partners presently has a consensus price target of $28.80, indicating a potential upside of 35.34%. Rice Midstream Partners has a consensus price target of $21.29, indicating a potential downside of 0.11%. Given Hess Midstream Partners’ stronger consensus rating and higher probable upside, equities analysts plainly believe Hess Midstream Partners is more favorable than Rice Midstream Partners.

About Hess Midstream Partners

Hess Midstream Partners LP is a fee-based, traditional master limited partnership formed to own, operate, develop and acquire a set of midstream assets to provide services to Hess and third-party crude oil and natural gas producers. The Company’s assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota (collectively referred as the Bakken). It operates its business through three segments: gathering; processing and storage; and terminaling and export. The Company’s gathering business consisted of its 20% controlling economic interest in Gathering Opco, which owns North Dakota natural gas, natural gas liquids and crude oil gathering systems. The Company’s processing and storage business consisted of its 20% controlling economic interest in the Tioga Gas Plant and its 100% interest in the Mentor Storage Terminal. The Company’s terminaling and export business consisted of its 20% controlling economic interest in Logistics Opco.

About Rice Midstream Partners

Rice Midstream Partners LP owns, operates, develops and acquires midstream assets in the Appalachian Basin. The Company’s segments are gathering and compression, and water services. The gathering and compression segment provides natural gas gathering and compression services for Rice Energy Inc. (Rice Energy) and third parties in the Appalachian Basin. The water services segment provides water services to support well completion activities, and to collect and recycle or dispose of flowback and produced water for Rice Energy and third parties in the Appalachian Basin. Its gas gathering and compression assets are located within the dry gas core of the Marcellus Shale and, consists of approximately 3.3 million dekatherms per day (MMDth/d) high-pressure dry gas gathering system and associated compression in Washington County, Pennsylvania, and an approximately 840 thousand dekatherms per day (MDth/d) high-pressure dry gas gathering system in Greene County, Pennsylvania.

Receive News & Ratings for Hess Midstream Partners LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hess Midstream Partners LP and related companies with MarketBeat.com's FREE daily email newsletter.