Critical Review: Antero Midstream GP (AMGP) versus Halliburton (HAL)

Antero Midstream GP (NASDAQ: AMGP) and Halliburton (NYSE:HAL) are both mid-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

79.4% of Halliburton shares are owned by institutional investors. 0.5% of Halliburton shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Antero Midstream GP does not pay a dividend. Halliburton pays out -423.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Antero Midstream GP and Halliburton’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Antero Midstream GP $39.24 million 91.85 N/A N/A N/A
Halliburton $17.09 billion 2.23 $2.51 billion ($0.17) -257.46

Halliburton has higher revenue and earnings than Antero Midstream GP.

Profitability

This table compares Antero Midstream GP and Halliburton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Antero Midstream GP N/A -77.88% -46.99%
Halliburton -0.86% 2.97% 1.06%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Antero Midstream GP and Halliburton, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Midstream GP 0 4 11 1 2.81
Halliburton 0 2 28 0 2.93

Antero Midstream GP currently has a consensus price target of $26.25, indicating a potential upside of 35.59%. Halliburton has a consensus price target of $57.35, indicating a potential upside of 31.02%. Given Antero Midstream GP’s higher possible upside, research analysts clearly believe Antero Midstream GP is more favorable than Halliburton.

Summary

Halliburton beats Antero Midstream GP on 9 of the 13 factors compared between the two stocks.

Antero Midstream GP Company Profile

Antero Midstream GP LP, formerly Antero Resources Midstream Management LLC, owns, operates and develops midstream energy infrastructure. The Company’s segments include gathering and processing and water handling and treatment. The gathering and processing segment consist of long-term, fee-based activities including low-pressure gathering, compression, high-pressure gathering, processing, fractionation, and condensate gathering. The Company’s water handling and treatment segment consists of long-term fee based activities including fresh water delivery used in completion activity, and water handling services. The Company’s assets are located both in the southwestern core of the Marcellus Shale in northwest West Virginia and in the core of the Utica Shale in southern Ohio.

Halliburton Company Profile

Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. It serves national and independent oil and natural gas companies. As of December 31, 2016, it had conducted business in approximately 70 countries around the world.

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