Kinder Morgan (NYSE: KMI) and EnLink Midstream Partners (NYSE:ENLK) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
This is a breakdown of recent ratings and target prices for Kinder Morgan and EnLink Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EnLink Midstream Partners||0||8||4||0||2.33|
Volatility and Risk
Kinder Morgan has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, EnLink Midstream Partners has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.
Earnings and Valuation
This table compares Kinder Morgan and EnLink Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kinder Morgan||$13.71 billion||2.44||$183.00 million||$0.66||22.98|
|EnLink Midstream Partners||$5.74 billion||0.80||$148.90 million||$0.03||438.00|
Kinder Morgan has higher revenue and earnings than EnLink Midstream Partners. Kinder Morgan is trading at a lower price-to-earnings ratio than EnLink Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Kinder Morgan pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 11.9%. Kinder Morgan pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream Partners pays out 5,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Kinder Morgan and EnLink Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EnLink Midstream Partners||2.51%||3.43%||1.47%|
Institutional & Insider Ownership
62.6% of Kinder Morgan shares are owned by institutional investors. Comparatively, 41.2% of EnLink Midstream Partners shares are owned by institutional investors. 14.0% of Kinder Morgan shares are owned by insiders. Comparatively, 0.2% of EnLink Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Kinder Morgan beats EnLink Midstream Partners on 12 of the 16 factors compared between the two stocks.
About Kinder Morgan
Kinder Morgan, Inc. is an energy infrastructure company. It operates through five segments. Its Natural Gas Pipelines segment is engaged in the ownership and operation of interstate and intrastate natural gas pipeline and storage systems, and liquefied natural gas facilities, among others. Its CO2 segment is engaged in the production, transportation and marketing of carbon dioxide (CO2) to oil fields and the ownership and operation of a crude oil pipeline system, among others. Its Terminals segment is engaged in the ownership and/or operation of liquids and bulk terminal facilities located throughout the United States and portions of Canada, and Jones Act tankers. Its Products Pipelines segment is engaged in the ownership and operation of refined petroleum products, natural gas liquids and crude oil and condensate pipelines. Its Kinder Morgan Canada segment is engaged in the ownership and operation of the Trans Mountain pipeline system and Jet Fuel aviation turbine fuel pipeline.
About EnLink Midstream Partners
EnLink Midstream Partners LP provides integrated midstream services across natural gas, crude oil, condensate, and NGL commodities. It focuses on gathering, transmission, processing, fractionation, storage, condensate stabilization, brine services and marketing, to producers of natural gas, NGLs, crude oil and condensate. The company was founded on July 12, 2002 and is headquartered in Dallas, TX.
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