CNX Midstream Partners (NYSE: CNXM) and Antero Midstream Partners (NYSE:AM) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
CNX Midstream Partners 48.53% 15.38% 12.36%
Antero Midstream Partners 32.74% 18.34% 9.83%

Institutional and Insider Ownership

19.8% of CNX Midstream Partners shares are held by institutional investors. Comparatively, 49.6% of Antero Midstream Partners shares are held by institutional investors. 7.9% of Antero Midstream Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

CNX Midstream Partners has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Antero Midstream Partners has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CNX Midstream Partners and Antero Midstream Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNX Midstream Partners 0 4 5 0 2.56
Antero Midstream Partners 0 0 13 0 3.00

CNX Midstream Partners currently has a consensus target price of $22.88, indicating a potential upside of 20.84%. Antero Midstream Partners has a consensus target price of $37.58, indicating a potential upside of 39.98%. Given Antero Midstream Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Antero Midstream Partners is more favorable than CNX Midstream Partners.

Dividends

CNX Midstream Partners pays an annual dividend of $1.25 per share and has a dividend yield of 6.6%. Antero Midstream Partners pays an annual dividend of $1.46 per share and has a dividend yield of 5.4%. CNX Midstream Partners pays out 72.7% of its earnings in the form of a dividend. Antero Midstream Partners pays out 114.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Antero Midstream Partners has increased its dividend for 2 consecutive years. CNX Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares CNX Midstream Partners and Antero Midstream 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 5.15 $114.99 million $1.72 11.01
Antero Midstream Partners $772.50 million 6.50 $307.31 million $1.28 20.98

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

Summary

Antero Midstream Partners beats CNX Midstream Partners on 11 of the 17 factors compared between the two stocks.

CNX Midstream Partners Company Profile

CNX Midstream Partners LP, formerly CONE Midstream Partners LP, is a master limited partnership formed by CONSOL Energy Inc. (CONSOL) and Noble Energy, Inc. (Noble Energy). The Company owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service CONSOL’s and Noble Energy’s production in the Marcellus Shale in Pennsylvania and West Virginia. Its assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. It operates through three segments: Anchor Systems, Growth Systems and Additional Systems. Its Anchor Systems include developed midstream systems, including its three midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. Its Growth Systems are located in the dry gas regions of its dedicated acreage.

Antero Midstream Partners Company Profile

Antero Midstream Partners LP is a limited partnership formed by Antero Resources Corporation (Antero Resources) to own, operate and develop midstream energy assets to service Antero Resources’ production. The Company’s segments include gathering and compression, and water handling and treatment. The gathering and compression segment includes a network of gathering pipelines, compressor stations, and processing and fractionation plants that collect and process natural gas, natural gas liquids (NGLs) and oil from Antero Resources’ wells in West Virginia and Ohio. Its water handling and treatment segment includes two independent fresh water distribution systems from sources including the Ohio River, local reservoirs, as well as several regional waterways. The water handling and treatment segment also includes other fluid handling services which includes, high rate transfer, wastewater transportation, disposal and treatment.

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