EnLink Midstream (NYSE: ENLC) and Buckeye Partners (NYSE:BPL) are both mid-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.
Earnings & Valuation
This table compares EnLink Midstream and Buckeye Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EnLink Midstream||$5.74 billion||0.46||$212.80 million||$1.16||12.67|
|Buckeye Partners||$3.65 billion||1.62||$478.80 million||$3.34||12.04|
Buckeye Partners has lower revenue, but higher earnings than EnLink Midstream. Buckeye Partners is trading at a lower price-to-earnings ratio than EnLink Midstream, indicating that it is currently the more affordable of the two stocks.
This table compares EnLink Midstream and Buckeye Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
EnLink Midstream has a beta of 2.58, indicating that its share price is 158% more volatile than the S&P 500. Comparatively, Buckeye Partners has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
EnLink Midstream pays an annual dividend of $1.04 per share and has a dividend yield of 7.1%. Buckeye Partners pays an annual dividend of $5.05 per share and has a dividend yield of 12.6%. EnLink Midstream pays out 89.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Buckeye Partners pays out 151.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream has raised its dividend for 15 consecutive years.
This is a breakdown of recent recommendations and price targets for EnLink Midstream and Buckeye Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EnLink Midstream presently has a consensus price target of $17.92, suggesting a potential upside of 21.88%. Buckeye Partners has a consensus price target of $59.18, suggesting a potential upside of 47.18%. Given Buckeye Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Buckeye Partners is more favorable than EnLink Midstream.
Insider and Institutional Ownership
33.7% of EnLink Midstream shares are owned by institutional investors. Comparatively, 70.3% of Buckeye Partners shares are owned by institutional investors. 1.2% of EnLink Midstream shares are owned by insiders. Comparatively, 0.4% of Buckeye Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Buckeye Partners beats EnLink Midstream on 11 of the 17 factors compared between the two stocks.
About EnLink Midstream
EnLink Midstream, LLC focuses on providing midstream energy services in the United States. It operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The company is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, exporting, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, and trans-loading crude oil, and condensate. Its midstream energy asset network includes approximately 11,000 miles of pipelines; 20 natural gas processing plants; 7 fractionators; barge and rail terminals; product storage facilities; brine disposal wells; and a crude oil trucking fleet. The company was founded in 2013 and is headquartered in Dallas, Texas. EnLink Midstream, LLC is a subsidiary of Devon Energy Corporation.
About Buckeye Partners
Buckeye Partners, L.P. owns and operates liquid petroleum products pipelines in the United States and internationally. The company operates through three segments: Domestic Pipelines & Terminals, Global Marine Terminals, and Merchant Services. The Domestic Pipelines & Terminals segment transports liquid petroleum products, including gasoline, jet fuel, and various distillates; refined petroleum products; and crude oil. This segment also provides crude oil services, including train loading/unloading, storage, and throughput; and turn-key operations and maintenance, asset development, and construction services for third-party pipeline and energy assets, as well as operates and/or maintains third-party pipelines. It owns and operates approximately 6,000 miles of pipeline located primarily in the northeastern and upper midwestern portions of the United States, and services 110 delivery locations; 115 active terminals that provide bulk storage and throughput services with aggregate storage capacity of 56 million barrels; and 2 underground propane storage caverns. The Global Marine Terminals segment provides marine accessible bulk storage and blending, rail and truck rack loading/unloading, and petroleum processing services in the New York Harbor on the East Coast and Corpus Christi, Texas in the Gulf Coast region of the United States, as well as The Bahamas, Puerto Rico, and St. Lucia in the Caribbean, Northwest Europe, the Middle East, and Southeast Asia. This segment owns and operates 22 liquid petroleum products and crude oil terminals. The Merchant Services segment is involved in the wholesale distribution of refined petroleum products, including gasoline, natural gas liquids, propane, ethanol, and biodiesel, as well as petroleum distillates, such as heating oil, diesel fuel, kerosene, and fuel oil. Buckeye GP LLC serves as the general partner of the company. Buckeye Partners, L.P. was founded in 1886 and is based in Houston, Texas.
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