CNX Midstream Partners (NYSE: CNXM) and Boardwalk Pipeline Partners (NYSE:BWP) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Volatility and Risk
CNX Midstream Partners has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Boardwalk Pipeline Partners has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
CNX Midstream Partners pays an annual dividend of $1.21 per share and has a dividend yield of 6.3%. Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. CNX Midstream Partners pays out 71.2% of its earnings in the form of a dividend. Boardwalk Pipeline Partners pays out 33.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation & Earnings
This table compares CNX Midstream Partners and Boardwalk Pipeline Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CNX Midstream Partners||$239.21 million||2.75||$96.48 million||$1.70||11.26|
|Boardwalk Pipeline Partners||$1.31 billion||2.54||$302.20 million||$1.18||11.25|
Boardwalk Pipeline Partners has higher revenue and earnings than CNX Midstream Partners. Boardwalk Pipeline Partners is trading at a lower price-to-earnings ratio than CNX Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
37.4% of CNX Midstream Partners shares are held by institutional investors. Comparatively, 97.2% of Boardwalk Pipeline Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares CNX Midstream Partners and Boardwalk Pipeline Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CNX Midstream Partners||48.40%||15.22%||12.15%|
|Boardwalk Pipeline Partners||22.50%||7.55%||4.00%|
This is a summary of current recommendations and price targets for CNX Midstream Partners and Boardwalk Pipeline Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CNX Midstream Partners||0||4||5||0||2.56|
|Boardwalk Pipeline Partners||1||3||3||0||2.29|
CNX Midstream Partners currently has a consensus target price of $22.43, indicating a potential upside of 17.18%. Boardwalk Pipeline Partners has a consensus target price of $19.33, indicating a potential upside of 45.69%. Given Boardwalk Pipeline Partners’ higher possible upside, analysts plainly believe Boardwalk Pipeline Partners is more favorable than CNX Midstream Partners.
CNX Midstream Partners beats Boardwalk Pipeline Partners on 10 of the 15 factors compared between the two stocks.
CNX Midstream Partners Company Profile
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. Its Additional Systems include various gathering systems located in the wet gas regions of its dedicated acreage.
Boardwalk Pipeline Partners Company Profile
Boardwalk Pipeline Partners, LP is a limited partnership company. The Company’s business includes integrated natural gas and natural gas liquids, and other hydrocarbons (referred to together as NGLs) pipeline and storage systems. The Company is engaged in the operation of interstate natural gas and NGLs pipeline systems, and integrated storage facilities, including interstate natural gas pipeline systems located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, and its NGLs pipelines and storage facilities in Louisiana and Texas. The Company conducts business through its subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines), and its subsidiaries, Gulf South Pipeline Company, LP, Texas Gas Transmission, LLC, Gulf Crossing Pipeline Company LLC, Boardwalk Louisiana Midstream, LLC, Boardwalk Petrochemical Pipeline, LLC and Boardwalk Field Services, LLC.
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