Midcoast Energy Partners (NYSE: MEP) and CVR Refining, (NYSE:CVRR) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Dividends

Midcoast Energy Partners pays an annual dividend of $1.43 per share and has a dividend yield of 18.0%. CVR Refining, does not pay a dividend. Midcoast Energy Partners pays out -81.2% of its earnings in the form of a dividend. CVR Refining, has raised its dividend for 2 consecutive years.

Profitability

This table compares Midcoast Energy Partners and CVR Refining,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midcoast Energy Partners -5.25% -34.51% -2.64%
CVR Refining, 1.02% 3.99% 2.25%

Analyst Ratings

This is a summary of current ratings and price targets for Midcoast Energy Partners and CVR Refining,, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midcoast Energy Partners 0 1 0 0 2.00
CVR Refining, 1 5 1 0 2.00

Midcoast Energy Partners presently has a consensus price target of $8.00, indicating a potential upside of 0.63%. CVR Refining, has a consensus price target of $10.08, indicating a potential downside of 6.64%. Given Midcoast Energy Partners’ higher probable upside, analysts plainly believe Midcoast Energy Partners is more favorable than CVR Refining,.

Insider & Institutional Ownership

64.7% of Midcoast Energy Partners shares are owned by institutional investors. Comparatively, 11.0% of CVR Refining, shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Midcoast Energy Partners has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500. Comparatively, CVR Refining, has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Valuation and Earnings

This table compares Midcoast Energy Partners and CVR Refining,’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Midcoast Energy Partners N/A N/A N/A ($1.76) -4.52
CVR Refining, $5.19 billion 0.31 $230.60 million $0.36 30.00

CVR Refining, has higher revenue and earnings than Midcoast Energy Partners. Midcoast Energy Partners is trading at a lower price-to-earnings ratio than CVR Refining,, indicating that it is currently the more affordable of the two stocks.

Summary

CVR Refining, beats Midcoast Energy Partners on 7 of the 12 factors compared between the two stocks.

Midcoast Energy Partners Company Profile

Midcoast Energy Partners, L.P. (MEP) is a limited partnership company that is engaged in the natural gas and natural gas liquids (NGL) midstream business. It operates through two segments: Gathering, Processing and Transportation, and Logistics and Marketing. It also provides marketing services of natural gas and NGLs to wholesale customers. The Company’s gathering, processing and transportation business includes natural gas and NGL gathering and transportation pipeline systems, natural gas processing and treating facilities, condensate stabilizers and an NGL fractionation facility. Its logistics and marketing business provides marketing services of natural gas, NGLs and condensate received from its gathering, processing and transportation business. The Company holds interest in Midcoast Operating, L.P., a Texas limited partnership that owns a network of natural gas and NGL gathering and transportation systems, natural gas processing and treating facilities.

CVR Refining, Company Profile

CVR Refining, LP is an independent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent region. The Company is a petroleum refiner. It owned and operated a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas with a rated capacity of 115,000 barrels per calendar day (bpcd) and a complex crude oil refinery in Wynnewood, Oklahoma with a rated capacity of 70,000 bpcd capable of processing 20,000 bpcd of light sour crude oils (within its rated capacity of 70,000 bpcd), as of December 31, 2016. In addition, it also controlled and operated supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of crude oil gathering tank farms, approximately 6.4 million barrels of owned and leased crude oil storage and over 4.5 million barrels of combined refined products and feedstocks storage capacity, as of December 31, 2016.

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