Western Midstream Partners (NYSE:WES – Get Free Report) and Hafnia (NYSE:HAFN – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Earnings and Valuation
This table compares Western Midstream Partners and Hafnia”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Western Midstream Partners | $4.33 billion | 4.24 | $1.18 billion | $3.18 | 13.99 |
| Hafnia | $955.87 million | 5.44 | $339.68 million | $1.32 | 7.68 |
Western Midstream Partners has higher revenue and earnings than Hafnia. Hafnia is trading at a lower price-to-earnings ratio than Western Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Western Midstream Partners and Hafnia, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Western Midstream Partners | 0 | 6 | 3 | 2 | 2.64 |
| Hafnia | 0 | 1 | 3 | 1 | 3.00 |
Western Midstream Partners currently has a consensus price target of $49.89, indicating a potential upside of 12.12%. Hafnia has a consensus price target of $12.00, indicating a potential upside of 18.30%. Given Hafnia’s stronger consensus rating and higher probable upside, analysts clearly believe Hafnia is more favorable than Western Midstream Partners.
Risk and Volatility
Western Midstream Partners has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Hafnia has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Profitability
This table compares Western Midstream Partners and Hafnia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Western Midstream Partners | 29.44% | 33.13% | 8.74% |
| Hafnia | 56.72% | 26.74% | 17.14% |
Dividends
Western Midstream Partners pays an annual dividend of $3.72 per share and has a dividend yield of 8.4%. Hafnia pays an annual dividend of $2.00 per share and has a dividend yield of 19.7%. Western Midstream Partners pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hafnia pays out 151.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Midstream Partners has raised its dividend for 5 consecutive years.
Insider & Institutional Ownership
84.8% of Western Midstream Partners shares are owned by institutional investors. 0.0% of Western Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Western Midstream Partners beats Hafnia on 11 of the 17 factors compared between the two stocks.
About Western Midstream Partners
Western Midstream Partners, LP, together with its subsidiaries, operates as a midstream energy company primarily in the United States. It is involved in gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing produced water. The company also buys and sells natural gas, NGLs, and condensate. It operates assets located in Texas, New Mexico, the Rocky Mountains, and North-central Pennsylvania. Western Midstream Holdings, LLC operates as the general partner of the company. The company was formerly known as Western Gas Equity Partners, LP and changed its name to Western Midstream Partners, LP in February 2019. Western Midstream Partners, LP was incorporated in 2007 and is based in The Woodlands, Texas.
About Hafnia
Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.
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