NuStar Energy (NYSE: NS) and Noble Midstream Partners (NYSE:NBLX) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.
Insider & Institutional Ownership
60.5% of NuStar Energy shares are held by institutional investors. Comparatively, 55.4% of Noble Midstream Partners shares are held by institutional investors. 4.1% of NuStar Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares NuStar Energy and Noble Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NuStar Energy||$1.81 billion||1.16||$147.96 million||$0.64||35.34|
|Noble Midstream Partners||$239.28 million||8.28||$140.57 million||$4.10||12.19|
NuStar Energy has higher revenue and earnings than Noble Midstream Partners. Noble Midstream Partners is trading at a lower price-to-earnings ratio than NuStar Energy, indicating that it is currently the more affordable of the two stocks.
This table compares NuStar Energy and Noble Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Noble Midstream Partners||53.98%||26.99%||16.52%|
NuStar Energy pays an annual dividend of $2.40 per share and has a dividend yield of 10.6%. Noble Midstream Partners pays an annual dividend of $2.04 per share and has a dividend yield of 4.1%. NuStar Energy pays out 375.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Noble Midstream Partners pays out 49.8% of its earnings in the form of a dividend.
Volatility & Risk
NuStar Energy has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Noble Midstream Partners has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.
This is a breakdown of recent ratings for NuStar Energy and Noble Midstream Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Noble Midstream Partners||0||0||7||0||3.00|
NuStar Energy currently has a consensus price target of $26.25, suggesting a potential upside of 16.05%. Noble Midstream Partners has a consensus price target of $58.71, suggesting a potential upside of 17.48%. Given Noble Midstream Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Noble Midstream Partners is more favorable than NuStar Energy.
Noble Midstream Partners beats NuStar Energy on 10 of the 16 factors compared between the two stocks.
NuStar Energy Company Profile
NuStar Energy L.P. engages in the terminalling, storage, and marketing of petroleum products in Texas. The company also engages in the transportation of petroleum products and anhydrous ammonia. It operates through three segments: Pipeline, Storage, and Fuels Marketing. The Pipeline segment transports refined petroleum products, crude oil, and anhydrous ammonia. The Storage segment owns terminal and storage facilities, which offer storage, handling, and other services for petroleum products, crude oil, specialty chemicals, and other liquids. This segment also provides pilotage, tug assistance, line handling, launch, emergency response, and other ship services. The Fuels Marketing segment is involved in the purchase of crude oil, fuel oil, bunker fuel, fuel oil blending components, and other refined products for resale. As of December 31, 2017, the company had 3,130 miles of refined product pipelines and 1,930 miles of crude oil pipelines in Texas, Oklahoma, Kansas, Colorado, and New Mexico; a 1,920-mile refined product pipeline originating in southern Kansas and terminating at Jamestown, North Dakota; a 450-mile refined product pipeline originating at Andeavor's Mandan, North Dakota refinery and terminating in Minneapolis, Minnesota; 2,000 miles of anhydrous ammonia pipelines; and 81 terminal and storage facilities, which offer approximately 96 million barrels of storage capacity. The company has operations in the United States, Canada, Mexico, the Netherlands, and the United Kingdom. Riverwalk Logistics, L.P. serves as the general partner of the company. NuStar Energy L.P. was founded in 1999 and is headquartered in San Antonio, Texas.
Noble Midstream Partners Company Profile
Noble Midstream Partners LP owns, operates, develops, and acquires midstream infrastructure assets in the United States. The company provides crude oil, natural gas, and water-related midstream services. The company operates in the Denver-Julesburg Basin in Colorado and the Delaware Basin in Texas. The company was founded in 2014 and is based in Houston, Texas. Noble Midstream Partners LP is a subsidiary of Noble Energy, Inc.
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