Enable Midstream Partners (NYSE: ENBL) and Southcross Energy Partners (NYSE:SXE) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 9.0%. Southcross Energy Partners does not pay a dividend. Enable Midstream Partners pays out 136.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners has raised its dividend for 4 consecutive years.
Enable Midstream Partners has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Southcross Energy Partners has a beta of 4.15, suggesting that its share price is 315% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Enable Midstream Partners and Southcross Energy Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enable Midstream Partners||0||5||3||0||2.38|
|Southcross Energy Partners||0||1||0||0||2.00|
Enable Midstream Partners currently has a consensus price target of $18.31, indicating a potential upside of 29.51%. Given Enable Midstream Partners’ stronger consensus rating and higher possible upside, research analysts plainly believe Enable Midstream Partners is more favorable than Southcross Energy Partners.
Valuation and Earnings
This table compares Enable Midstream Partners and Southcross Energy Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enable Midstream Partners||$2.80 billion||2.18||$436.00 million||$0.93||15.20|
|Southcross Energy Partners||$665.95 million||0.22||-$67.66 million||($1.11)||-1.68|
Enable Midstream Partners has higher revenue and earnings than Southcross Energy Partners. Southcross Energy Partners is trading at a lower price-to-earnings ratio than Enable Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
18.3% of Enable Midstream Partners shares are owned by institutional investors. Comparatively, 3.9% of Southcross Energy Partners shares are owned by institutional investors. 23.8% of Southcross Energy Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Enable Midstream Partners and Southcross Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enable Midstream Partners||15.23%||5.81%||3.78%|
|Southcross Energy Partners||-10.16%||-12.87%||-6.00%|
Enable Midstream Partners beats Southcross Energy Partners on 14 of the 17 factors compared between the two stocks.
Enable Midstream Partners Company Profile
Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states.
Southcross Energy Partners Company Profile
Southcross Energy Partners, L.P. provides natural gas gathering, processing, treating, compression and transportation services and natural gas liquid (NGL) fractionation and transportation services. The Company also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama As of December 31, 2016, its assets consisted of gathering systems, intrastate pipelines, two natural gas processing plants, one fractionation facility, 20 compressor stations and a treating system. Its gathering systems and intrastate pipelines include South Texas and Mississippi/Alabama. The assets in its South Texas region are located between Montgomery County, which is north of Houston, and Webb and Dimmit Counties near the Texas-Mexico border. The assets in its Mississippi region are located principally in the southern half of the state and consist of intrastate pipeline system in Mississippi.
Receive News & Ratings for Enable Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enable Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.