Summit Midstream Partners (NYSE: SMLP) is one of 49 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its peers? We will compare Summit Midstream Partners to related businesses based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Summit Midstream Partners pays an annual dividend of $2.30 per share and has a dividend yield of 11.9%. Summit Midstream Partners pays out 157.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.7% and pay out 161.1% of their earnings in the form of a dividend. Summit Midstream Partners has increased its dividend for 3 consecutive years. Summit Midstream Partners is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Volatility & Risk
Summit Midstream Partners has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Summit Midstream Partners’ peers have a beta of 1.32, meaning that their average stock price is 32% more volatile than the S&P 500.
This table compares Summit Midstream Partners and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Summit Midstream Partners||24.14%||11.61%||4.31%|
|Summit Midstream Partners Competitors||17.60%||89.27%||5.80%|
Earnings & Valuation
This table compares Summit Midstream Partners and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Summit Midstream Partners||$402.36 million||-$40.91 million||13.22|
|Summit Midstream Partners Competitors||$4.88 billion||$288.25 million||19.05|
Summit Midstream Partners’ peers have higher revenue and earnings than Summit Midstream Partners. Summit Midstream Partners is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current ratings and price targets for Summit Midstream Partners and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Summit Midstream Partners||1||2||3||0||2.33|
|Summit Midstream Partners Competitors||306||1835||2421||86||2.49|
Summit Midstream Partners currently has a consensus target price of $26.20, suggesting a potential upside of 35.75%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 23.71%. Given Summit Midstream Partners’ higher probable upside, analysts plainly believe Summit Midstream Partners is more favorable than its peers.
Institutional & Insider Ownership
48.8% of Summit Midstream Partners shares are owned by institutional investors. Comparatively, 57.5% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summit Midstream Partners peers beat Summit Midstream Partners on 10 of the 15 factors compared.
About Summit Midstream Partners
Summit Midstream Partners, LP focuses on developing, owning and operating midstream energy infrastructure assets. The Company’s segments include the Utica Shale, which includes its ownership interest in Ohio Gathering, as well as Summit Utica; the Williston Basin, which includes Bison Midstream, Polar and Divide and Tioga Midstream; the Marcellus Shale, which includes Mountaineer Midstream; the Barnett Shale, which includes DFW Midstream Services LLC (DFW Midstream), and the Piceance Basin /DJ Basins, which includes Grand River and Niobrara G&P. The Company’s assets are located in the producing areas of unconventional resource basins, primarily shale formations, in the continental United States. It provides natural gas gathering, treating and processing services, as well as crude oil and produced water gathering services pursuant to long-term and fee-based agreements with its customers.
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