Contrasting Kinetik (NYSE:KNTK) and ENI (NYSE:E)

ENI (NYSE:E) and Kinetik (NYSE:KNTK) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ENI and Kinetik, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENI	0	5	6	2	2.77
Kinetik	0	7	11	1	2.68

ENI presently has a consensus price target of $46.15, indicating a potential downside of 14.93%. Kinetik has a consensus price target of $54.00, indicating a potential upside of 0.63%. Given Kinetik’s higher probable upside, analysts plainly believe Kinetik is more favorable than ENI.

Institutional and Insider Ownership

1.2% of ENI shares are owned by institutional investors. Comparatively, 21.1% of Kinetik shares are owned by institutional investors. 0.0% of ENI shares are owned by company insiders. Comparatively, 3.6% of Kinetik shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

ENI has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Kinetik has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Valuation & Earnings

This table compares ENI and Kinetik”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENI	$88.45 billion	1.04	$2.95 billion	$3.91	13.87
Kinetik	$1.89 billion	4.62	$525.93 million	$2.76	19.44

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

Profitability

This table compares ENI and Kinetik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENI	6.51%	11.27%	4.32%
Kinetik	26.19%	-38.96%	7.07%

Dividends

ENI pays an annual dividend of $1.73 per share and has a dividend yield of 3.2%. Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 6.0%. ENI pays out 44.2% of its earnings in the form of a dividend. Kinetik pays out 117.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kinetik has increased its dividend for 1 consecutive years. Kinetik is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Kinetik beats ENI on 11 of the 18 factors compared between the two stocks.

About ENI

Eni SpA engages in the exploration, production, refining, and sale of oil, gas, electricity, and chemicals. It operates through the following segments: Exploration and Production, Global Gas and LNG Portfolio, Refining & Marketing and Chemicals, Power & Renewables, and Corporate and Other Activities. The Exploration and Production segment engages in research, development and production of oil, condensates and natural gas, forestry conservation (REDD+) and CO2 capture and storage projects. The Global Gas and LNG Portfolio segment refers to the supply and sale of wholesale natural gas by pipeline, international transport and purchase and marketing of LNG, which includes gas trading activities finalized to hedging and stabilizing the trade margins, as well as optimizing the gas asset portfolio. The Refining & Marketing and Chemicals segment engages in supply, processing, distribution, and marketing of fuels and chemicals. The Corporate and Other Activities segment includes the main business support functions in particular holding, central treasury, IT, human resources, real estate services, captive insurance activities, research and development, new technologies, business digitalization, and environmental activities. The company was founded on February 10, 1953 and is headquartered in Rome, Italy.

About Kinetik

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.