EnLink Midstream Partners (NYSE: ENLK) and Boardwalk Pipeline Partners (NYSE:BWP) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Insider and Institutional Ownership
41.2% of EnLink Midstream Partners shares are owned by institutional investors. Comparatively, 93.7% of Boardwalk Pipeline Partners shares are owned by institutional investors. 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 company is poised for long-term growth.
This is a summary of recent recommendations for EnLink Midstream Partners and Boardwalk Pipeline Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EnLink Midstream Partners||0||9||4||0||2.31|
|Boardwalk Pipeline Partners||1||3||3||0||2.29|
EnLink Midstream Partners currently has a consensus target price of $16.82, suggesting a potential upside of 27.03%. Boardwalk Pipeline Partners has a consensus target price of $18.14, suggesting a potential upside of 76.32%. Given Boardwalk Pipeline Partners’ higher probable upside, analysts plainly believe Boardwalk Pipeline Partners is more favorable than EnLink Midstream Partners.
EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 11.8%. Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.9%. 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. Boardwalk Pipeline Partners pays out 29.6% of its earnings in the form of a dividend.
Risk & Volatility
EnLink Midstream Partners has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, Boardwalk Pipeline Partners has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Earnings & Valuation
This table compares EnLink Midstream Partners and Boardwalk Pipeline Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EnLink Midstream Partners||$5.74 billion||0.81||$148.90 million||$0.03||441.33|
|Boardwalk Pipeline Partners||$1.32 billion||1.95||$297.00 million||$1.35||7.62|
Boardwalk Pipeline Partners has lower revenue, but higher earnings than EnLink Midstream Partners. Boardwalk Pipeline Partners 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.
This table compares EnLink Midstream Partners and Boardwalk Pipeline 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%|
|Boardwalk Pipeline Partners||22.46%||7.38%||3.92%|
Boardwalk Pipeline Partners beats EnLink Midstream Partners on 9 of the 16 factors compared between the two stocks.
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.
About Boardwalk Pipeline Partners
Boardwalk Pipeline Partners, LP, through its subsidiaries, owns and operates integrated natural gas and natural gas liquids and other hydrocarbons (NGLs) pipeline and storage systems in the United States. It operates interstate natural gas and NGLs pipeline systems, and integrated storage facilities, which are located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. The company's pipeline systems contain approximately 13,880 miles of interconnected natural gas pipelines, directly serving customers in 13 states and indirectly serving customers throughout the northeastern and southeastern United States through various interconnections with unaffiliated pipelines. It also owns and operates approximately 455 miles of NGLs pipelines serving customers in Louisiana and Texas. In addition, the company has underground storage caverns having aggregate capacity of approximately 205.0 billion cubic feet of working natural gas and 24.5 million barrels of NGLs. It serves producers of natural gas, local distribution companies, marketers, electric power generators, industrial users, and interstate and intrastate pipelines. The company was founded in 2005 and is headquartered in Houston, Texas. Boardwalk Pipeline Partners, LP is a subsidiary of Boardwalk Pipelines Holding Corp.
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