Head-To-Head Contrast: Noble Midstream Partners (NBLX) versus Enterprise Products Partners (EPD)

Enterprise Products Partners (NYSE: EPD) and Noble Midstream Partners (NYSE:NBLX) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Volatility & Risk

Enterprise Products Partners has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Noble Midstream Partners has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Dividends

Enterprise Products Partners pays an annual dividend of $1.69 per share and has a dividend yield of 6.9%. Noble Midstream Partners pays an annual dividend of $1.87 per share and has a dividend yield of 3.9%. Enterprise Products Partners pays out 152.3% 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 50.5% of its earnings in the form of a dividend. Noble Midstream Partners has raised its dividend for 18 consecutive years.

Profitability

This table compares Enterprise Products Partners and Noble Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Products Partners 9.83% 12.02% 5.22%
Noble Midstream Partners 55.83% 36.74% 24.51%

Insider and Institutional Ownership

37.8% of Enterprise Products Partners shares are owned by institutional investors. Comparatively, 88.0% of Noble Midstream Partners shares are owned by institutional investors. 37.5% of Enterprise Products Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Enterprise Products Partners and Noble Midstream Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Products Partners 0 1 12 0 2.92
Noble Midstream Partners 0 2 6 0 2.75

Enterprise Products Partners presently has a consensus target price of $30.88, indicating a potential upside of 26.94%. Noble Midstream Partners has a consensus target price of $51.86, indicating a potential upside of 8.17%. Given Enterprise Products Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Enterprise Products Partners is more favorable than Noble Midstream Partners.

Valuation & Earnings

This table compares Enterprise Products Partners and Noble Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise Products Partners $23.02 billion 2.28 $2.51 billion $1.11 21.92
Noble Midstream Partners $160.72 million 5.97 $74.44 million $3.70 12.96

Enterprise Products Partners has higher revenue and earnings than Noble Midstream Partners. Noble Midstream Partners is trading at a lower price-to-earnings ratio than Enterprise Products Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Enterprise Products Partners beats Noble Midstream Partners on 9 of the 17 factors compared between the two stocks.

Enterprise Products Partners Company Profile

Enterprise Products Partners L.P. (Enterprise) is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals and refined products in North America. The Company’s segments include NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The Company’s midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals, including liquefied petroleum gas (LPG); crude oil gathering, transportation, storage and terminals; petrochemical and refined products transportation, storage, export and import terminals, and related services, and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems.

Noble Midstream Partners Company Profile

Noble Midstream Partners LP is engaged in owning, operating, developing and acquiring a range of domestic midstream infrastructure assets. The Company’s areas of focus are in the area of Denver-Julesburg (DJ) Basin in Colorado and the Southern Delaware Basin position of the Permian Basin in Texas (Delaware Basin). Its segments include Gathering Systems, Fresh Water Delivery, and Investments in White Cliffs and Other. The Gathering Systems segment includes crude oil, natural gas and produced water gathering, as well as crude oil treating. It holds interest in White Cliffs Pipeline L.L.C. (the White Cliffs Interest). The Investments in White Cliffs and Other segment includes activity associated with the White Cliffs Interest. As of December 31, 2016, the White Cliffs Pipeline system consisted of two 527-mile crude oil pipelines that extended from the DJ Basin to the Cushing, Oklahoma. It provides crude oil, natural gas, and water-related midstream services for Noble Energy, Inc.

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