American Midstream Partners (AMID) versus Enterprise Products Partners (EPD) Critical Review
American Midstream Partners (NYSE: EPD) and Enterprise Products Partners (NYSE:EPD) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Risk and Volatility
American Midstream Partners has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Enterprise Products Partners has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for American Midstream Partners and Enterprise Products Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Midstream Partners||0||3||0||0||2.00|
|Enterprise Products Partners||0||0||17||0||3.00|
American Midstream Partners currently has a consensus price target of $13.67, suggesting a potential upside of 125.90%. Enterprise Products Partners has a consensus price target of $32.33, suggesting a potential upside of 12.07%. Given American Midstream Partners’ higher probable upside, research analysts plainly believe American Midstream Partners is more favorable than Enterprise Products Partners.
American Midstream Partners pays an annual dividend of $0.41 per share and has a dividend yield of 6.8%. Enterprise Products Partners pays an annual dividend of $1.72 per share and has a dividend yield of 6.0%. Enterprise Products Partners pays out 130.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enterprise Products Partners has raised its dividend for 19 consecutive years.
Insider & Institutional Ownership
41.4% of American Midstream Partners shares are owned by institutional investors. Comparatively, 36.5% of Enterprise Products Partners shares are owned by institutional investors. 5.4% of American Midstream Partners shares are owned by company insiders. Comparatively, 37.5% of Enterprise Products Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares American Midstream Partners and Enterprise Products Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Midstream Partners||$655.98 million||0.68||-$222.97 million||N/A||N/A|
|Enterprise Products Partners||$29.24 billion||2.13||$2.80 billion||$1.32||21.86|
Enterprise Products Partners has higher revenue and earnings than American Midstream Partners.
This table compares American Midstream Partners and Enterprise Products Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Midstream Partners||-13.56%||-66.74%||-7.63%|
|Enterprise Products Partners||8.95%||14.42%||6.00%|
Enterprise Products Partners beats American Midstream Partners on 10 of the 15 factors compared between the two stocks.
American Midstream Partners Company Profile
American Midstream Partners, LP provides midstream infrastructure that links the producers of natural gas, crude oil, natural gas liquids (NGLs), condensate, and specialty chemicals to various intermediate and end-use markets in the United States and Mexico. Its Gas Gathering and Processing Services segment offers services to producers of natural gas and crude oil, including transporting raw natural gas and crude oil from various receipt points through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs, and selling or delivering pipeline-quality natural gas and NGLs. The company's Liquid Pipelines and Services segment transports, purchases, and sells crude oil. Its Natural Gas Transportation Services segment transports and delivers natural gas from producing wells, receipt points, or pipeline interconnects for shippers, local distribution companies, and utilities, as well as industrial, commercial, and power generation customers. The company's Offshore Pipelines and Services segment gathers and transports natural gas from receipt points to other pipeline interconnects, onshore facilities, and other delivery points. Its Terminalling Services segment provides petroleum products, distillates, chemicals, and agricultural products storage services at its marine terminals for commodity brokers, refiners, and chemical manufacturers. As of May 10, 2018, the company owned approximately 5,100 miles of interstate and intrastate pipelines; gas processing plants and fractionation facilities; an offshore semisubmersible floating production system with nameplate processing capacity of 90 thousand barrels per day of crude oil and 220 million cubic feet per day of natural gas; and terminal sites with approximately 6.7 million barrels of storage capacity. American Midstream GP, LLC serves as the general partner of the company. The company was founded in 2009 and is headquartered in Houston, Texas.
Enterprise Products Partners Company Profile
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services, as well as NGL export docks and related services. It operates approximately 19,600 miles of NGL pipelines; NGL and related product storage facilities; 14 NGL fractionators; and a liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,800 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 495 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,700 miles of natural gas pipeline systems to gather and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It leases underground salt dome natural gas storage facilities in Texas and Louisiana; owns an underground salt dome storage cavern in Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related activities, including 800 miles of pipelines; butane isomerization complex, associated deisobutanizer units, and related pipeline assets; and octane enhancement and high purity isobutylene production facilities. It also operates approximately 4,100 miles of refined products pipelines; and terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.
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