Analyzing ENERGY TRANSFER/UT LTD PARTN INT (ET) and Enable Midstream Partners (ENBL)

ENERGY TRANSFER/UT LTD PARTN INT (NYSE:ET) and Enable Midstream Partners (NYSE:ENBL) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Risk and Volatility

ENERGY TRANSFER/UT LTD PARTN INT has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Enable Midstream Partners has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Institutional & Insider Ownership

47.0% of ENERGY TRANSFER/UT LTD PARTN INT shares are held by institutional investors. Comparatively, 19.5% of Enable Midstream Partners shares are held by institutional investors. 3.3% of ENERGY TRANSFER/UT LTD PARTN INT shares are held 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.

Analyst Ratings

This is a summary of current recommendations for ENERGY TRANSFER/UT LTD PARTN INT and Enable Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENERGY TRANSFER/UT LTD PARTN INT 0 0 4 0 3.00
Enable Midstream Partners 0 5 2 0 2.29

ENERGY TRANSFER/UT LTD PARTN INT presently has a consensus price target of $19.67, indicating a potential upside of 38.01%. Enable Midstream Partners has a consensus price target of $18.29, indicating a potential upside of 35.85%. Given ENERGY TRANSFER/UT LTD PARTN INT’s stronger consensus rating and higher possible upside, research analysts plainly believe ENERGY TRANSFER/UT LTD PARTN INT is more favorable than Enable Midstream Partners.

Profitability

This table compares ENERGY TRANSFER/UT LTD PARTN INT and Enable Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENERGY TRANSFER/UT LTD PARTN INT 2.58% 5.68% 1.98%
Enable Midstream Partners 13.84% 6.28% 3.87%

Valuation & Earnings

This table compares ENERGY TRANSFER/UT LTD PARTN INT and Enable Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ENERGY TRANSFER/UT LTD PARTN INT $40.52 billion 0.41 $915.00 million $1.21 11.78
Enable Midstream Partners $2.80 billion 2.08 $436.00 million $0.92 14.63

ENERGY TRANSFER/UT LTD PARTN INT has higher revenue and earnings than Enable Midstream Partners. ENERGY TRANSFER/UT LTD PARTN INT is trading at a lower price-to-earnings ratio than Enable Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

ENERGY TRANSFER/UT LTD PARTN INT pays an annual dividend of $1.22 per share and has a dividend yield of 8.6%. Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 9.4%. ENERGY TRANSFER/UT LTD PARTN INT pays out 100.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners pays out 138.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

ENERGY TRANSFER/UT LTD PARTN INT beats Enable Midstream Partners on 10 of the 16 factors compared between the two stocks.

ENERGY TRANSFER/UT LTD PARTN INT Company Profile

Energy Transfer LP provides diversified energy-related services in the United States. It owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and approximately 11,800 miles of interstate natural gas pipelines. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. It owns and operates natural gas and natural gas liquid (NGL) gathering pipelines, as well as natural gas processing plants, treating facilities, and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; a natural gas gathering system in Ohio; and transportation and supply of water to natural gas producers in Pennsylvania. The company also owns approximately 4,300 miles of NGL pipelines, 5 NGL and propane fractionation facilities, and NGL storage facilities with aggregate working storage capacity of approximately 53 million barrels. It also sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. The company provides natural gas compression services; treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates a total of 75 megawatts electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. The company was founded in 2002 and is based in Dallas, Texas.

Enable Midstream Partners Company Profile

Enable Midstream Partners, LP owns, operates, and develops midstream energy infrastructure assets in the United States. The company operates in two segments, Gathering and Processing; and Transportation and Storage. The Gathering and Processing segment provides natural gas gathering, processing, and fractionation services in the Anadarko, Arkoma, and Ark-La-Tex basins, as well as crude oil gathering services in the Bakken Shale formation of the Williston Basin for its producer customers. The Transportation and Storage segment offers interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, utilities, and industrial customers. The company's natural gas gathering and processing assets are located in Oklahoma, Texas, Arkansas, and Louisiana; crude oil gathering assets are located in North Dakota; and natural gas transportation and storage assets extend from western Oklahoma and the Texas Panhandle to Louisiana, from Louisiana to Illinois, in Oklahoma, and from Louisiana to Alabama. As of December 31, 2017, its portfolio of midstream energy infrastructure assets included approximately 13,300 miles of gathering pipelines; 15 processing plants with 2.6 billion cubic feet per day of processing capacity; approximately 7,800 miles of interstate pipelines; approximately 2,200 miles of intrastate pipelines; and 8 natural gas storage facilities with 86.0 billion cubic feet of storage capacity. The company is based in Oklahoma City, Oklahoma. Enable Midstream Partners, LP is a subsidiary of CenterPoint Energy, Inc.

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