Enbridge (NYSE: ENB) and QEP Midstream Partners (NYSE:QEPM) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional and Insider Ownership
65.1% of Enbridge 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.
Enbridge pays an annual dividend of $2.14 per share and has a dividend yield of 6.5%. QEP Midstream Partners does not pay a dividend. Enbridge pays out 162.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge has increased its dividend for 6 consecutive years.
Earnings & Valuation
This table compares Enbridge and QEP Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enbridge||$34.94 billion||1.60||$2.21 billion||$1.32||24.92|
|QEP Midstream Partners||N/A||N/A||N/A||$1.11||14.50|
Enbridge has higher revenue and earnings than QEP Midstream Partners. QEP Midstream Partners is trading at a lower price-to-earnings ratio than Enbridge, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Enbridge and QEP Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QEP Midstream Partners||0||0||0||0||N/A|
Enbridge presently has a consensus target price of $51.25, suggesting a potential upside of 55.82%. Given Enbridge’s higher possible upside, research analysts plainly believe Enbridge is more favorable than QEP Midstream Partners.
This table compares Enbridge and QEP Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QEP Midstream Partners||62.86%||23.46%||13.76%|
Enbridge beats QEP Midstream Partners on 8 of the 12 factors compared between the two stocks.
Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.
About QEP Midstream Partners
QEP Midstream Partners, LP (QEP Midstream) is a master limited partnership formed to own, operate, acquire and develop midstream energy assets. The Company’s primary assets consist of ownership interests in four gathering systems and two Federal Energy Regulatory Commission (FERC)-regulated pipelines through which, the Company provides natural gas midstream services, and crude oil gathering and transportation services to producers and users of natural gas and crude oil. The natural gas midstream services include gathering, compression, treating and dehydration, processing, fractionation, natural gas transmission and natural gas liquids (NGL) products transportation. The Company provides crude oil gathering and transportation services in Colorado, North Dakota, Utah and Wyoming.
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