Sandridge Mississippian Trust I (NYSE:SDT) and Hess Midstream Partners (NYSE:HESM) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Earnings & Valuation
This table compares Sandridge Mississippian Trust I and Hess Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sandridge Mississippian Trust I||$8.15 million||2.03||$5.16 million||N/A||N/A|
|Hess Midstream Partners||$662.40 million||0.78||$372.30 million||$1.27||14.90|
This is a breakdown of recent ratings and price targets for Sandridge Mississippian Trust I and Hess Midstream Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sandridge Mississippian Trust I||0||0||0||0||N/A|
|Hess Midstream Partners||0||2||4||0||2.67|
Hess Midstream Partners has a consensus price target of $25.60, indicating a potential upside of 35.31%. Given Hess Midstream Partners’ higher possible upside, analysts clearly believe Hess Midstream Partners is more favorable than Sandridge Mississippian Trust I.
Institutional & Insider Ownership
49.9% of Hess Midstream Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Sandridge Mississippian Trust I and Hess Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sandridge Mississippian Trust I||63.14%||18.94%||18.94%|
|Hess Midstream Partners||10.16%||2.56%||2.47%|
Sandridge Mississippian Trust I pays an annual dividend of $0.15 per share and has a dividend yield of 25.4%. Hess Midstream Partners pays an annual dividend of $1.53 per share and has a dividend yield of 8.1%. Hess Midstream Partners pays out 120.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Sandridge Mississippian Trust I has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Hess Midstream Partners has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Hess Midstream Partners beats Sandridge Mississippian Trust I on 7 of the 13 factors compared between the two stocks.
About Sandridge Mississippian Trust I
SandRidge Mississippian Trust I, a statutory trust, holds royalty interests in specified oil and natural gas properties located in the Mississippian formation in Alfalfa, Garfield, Grant, and Woods counties in Oklahoma. As of December 31, 2017, the company's properties comprised royalty interests in the initial wells; and 121 additional wells that were drilled and perforated by the company. SandRidge Mississippian Trust I was founded in 2010 and is based in Austin, Texas.
About Hess Midstream Partners
Hess Midstream Partners LP owns, operates, develops, and acquires midstream assets to provide services to Hess and third-party customers in the United States. It operates through three segments: Gathering, Processing and Storage, and Terminaling and Export. The Gathering segment is involved in the natural gas and crude oil gathering and compression activities located primarily in McKenzie, Williams and Mountrail Counties, and North Dakota. Its gathering systems consists of approximately 1,200 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of up to 370 million cubic feet per day approximately, including an aggregate compression capacity of 190 million cubic feet per day; and crude oil gathering system comprises approximately 400 miles of crude oil gathering pipelines with capacity of up to 160 thousand barrels per day. The Processing and Storage segment operates Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; and Mentor storage terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; and crude oil rail cars, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream Partners LP was founded in 2014 and is based in Houston, Texas.
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