Reviewing Marathon Petroleum (MPC) & Enlink Midstream (XTXI)
Marathon Petroleum (NYSE: MPC) and Enlink Midstream (NASDAQ:XTXI) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Marathon Petroleum pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Enlink Midstream does not pay a dividend. Marathon Petroleum pays out 49.1% of its earnings in the form of a dividend. Marathon Petroleum has raised its dividend for 7 consecutive years.
This table compares Marathon Petroleum and Enlink Midstream’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marathon Petroleum||$63.36 billion||0.55||$1.17 billion||$3.26||21.93|
Marathon Petroleum has higher revenue and earnings than Enlink Midstream. Enlink Midstream is trading at a lower price-to-earnings ratio than Marathon Petroleum, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
80.6% of Marathon Petroleum shares are owned by institutional investors. 1.1% of Marathon Petroleum shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Marathon Petroleum and Enlink Midstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for Marathon Petroleum and Enlink Midstream, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Marathon Petroleum presently has a consensus price target of $69.80, suggesting a potential downside of 2.36%. Given Marathon Petroleum’s higher possible upside, equities analysts clearly believe Marathon Petroleum is more favorable than Enlink Midstream.
Marathon Petroleum beats Enlink Midstream on 12 of the 13 factors compared between the two stocks.
Marathon Petroleum Company Profile
Marathon Petroleum Corporation is engaged in refining, marketing, retail and transportation businesses in the United States and the largest east of the Mississippi. The Company operates through three segments: Refining & Marketing; Speedway; and Midstream. The Refining & Marketing segment refines crude oil and other feedstocks at the Company’s seven refineries in the Gulf Coast and Midwest regions of the United States. Its Speedway segment sells transportation fuels and convenience products in the retail market in the Midwest, East Coast and Southeast regions of the United States. The Company’s Midstream is engaged in the operations of MPLX LP and certain other related operations. It gathers, processes and transports natural gas, natural gas liquids (NGLs), crude oil and refined products. MPLX is a limited partnership which owns, operates, develops and acquires midstream energy infrastructure assets.
Enlink Midstream Company Profile
Enlink Midstream Partners, L.P. is engaged, through its subsidiaries, in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs). The Company connects the wells of natural gas producers in the geographic areas of its gathering systems in order to gather for a fee or purchase the gas production, processes natural gas for the removal of NGLs, transports natural gas and NGLs and ultimately provides natural gas and NGLs to a variety of markets. In addition, it purchases natural gas and NGLs from producers not connected to its gathering systems for resale and markets natural gas and NGLs on behalf of producers for a fee. Its partnership interests consist of 19.7% limited partner interest in Crosstex Energy, L.P. (the Partnership), as of December 31, 2012, and 100% ownership interest in Crosstex Energy GP, LLC, the general partner of the Partnership, which owns a 2.0% general partner interest and all of the distribution rights in the Partnership.
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