PAA Natural Gas Storage (NYSE: PNG) and Dominion Energy Midstream Partners (NYSE:DM) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Institutional & Insider Ownership
58.5% of Dominion Energy Midstream Partners shares are owned by institutional investors. 11.2% of Dominion Energy Midstream Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares PAA Natural Gas Storage and Dominion Energy Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PAA Natural Gas Storage||N/A||N/A||N/A|
|Dominion Energy Midstream Partners||22.61%||2.14%||1.60%|
Dominion Energy Midstream Partners pays an annual dividend of $1.21 per share and has a dividend yield of 3.8%. PAA Natural Gas Storage does not pay a dividend. Dominion Energy Midstream Partners pays out 87.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations for PAA Natural Gas Storage and Dominion Energy Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PAA Natural Gas Storage||0||0||0||0||N/A|
|Dominion Energy Midstream Partners||1||5||3||0||2.22|
Dominion Energy Midstream Partners has a consensus target price of $34.29, indicating a potential upside of 8.33%.
Earnings and Valuation
This table compares PAA Natural Gas Storage and Dominion Energy Midstream Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PAA Natural Gas Storage||N/A||N/A||N/A||$0.92||N/A|
|Dominion Energy Midstream Partners||$441.30 million||4.84||$106.40 million||$1.39||22.77|
Dominion Energy Midstream Partners has higher revenue and earnings than PAA Natural Gas Storage. PAA Natural Gas Storage is trading at a lower price-to-earnings ratio than Dominion Energy Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Dominion Energy Midstream Partners beats PAA Natural Gas Storage on 9 of the 10 factors compared between the two stocks.
About PAA Natural Gas Storage
PAA Natural Gas Storage, L.P. is engaged in the business of acquisition, development, ownership, operation and commercial management of natural gas storage facilities. As of December 31, 2012, the Company owned and operated three natural gas storage facilities located in Louisiana, Mississippi and Michigan. The Company also leases storage capacity and pipelines transportation capacity from third parties. The Company provides natural gas storage services to a mix of customers, including local gas distribution company’s liquefied natural gas (LNG), electric utilities, pipelines, direct industrial users, electric power generators, marketers, producers, LNG exporters and affiliates of such entities. In December 31, 2013, Plains All American Pipeline, L.P. (Plains) completed the merger of PAA Natural Gas Storage, L.P with a wholly owned subsidiary of Plains, with Plains surviving the merger as a wholly owned subsidiary of PAA.
About Dominion Energy Midstream Partners
Dominion Energy Midstream Partners, LP, formerly Dominion Midstream Partners, LP, is a limited partnership. The Company is formed to grow a portfolio of natural gas terminaling, processing, storage, transportation and related assets. The Company’s segments include Dominion Energy, which consists of gas transportation, liquefied natural gas (LNG) import and storage, and Corporate and Other. The Company owns the preferred equity interests and the general partner interest of Dominion Cove Point LNG, LP (Cove Point). Cove Point’s operations consist of LNG import and storage services at the Cove Point LNG Facility and the transportation of domestic natural gas and regasified LNG to Mid-Atlantic markets through the Cove Point Pipeline. The Cove Point LNG Facility includes an offshore pier, regasification facilities and associated equipment required to receive imported LNG from tankers; store LNG in storage tanks; regasify LNG, and deliver regasified LNG to the Cove Point Pipeline.
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