Enterprise Products Partners (NYSE: EPD) and BP Midstream Partners (NYSE:BPMP) are both mid-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
This table compares Enterprise Products Partners and BP 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%|
|BP Midstream Partners||N/A||N/A||N/A|
This is a summary of current recommendations and price targets for Enterprise Products Partners and BP Midstream Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enterprise Products Partners||0||1||13||0||2.93|
|BP Midstream Partners||0||4||2||0||2.33|
Enterprise Products Partners presently has a consensus target price of $30.88, suggesting a potential upside of 11.56%. BP Midstream Partners has a consensus target price of $20.80, suggesting a potential downside of 1.79%. Given Enterprise Products Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Enterprise Products Partners is more favorable than BP Midstream Partners.
Enterprise Products Partners pays an annual dividend of $1.69 per share and has a dividend yield of 6.1%. BP Midstream Partners does not pay a dividend. 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. Enterprise Products Partners has increased its dividend for 18 consecutive years.
Earnings and Valuation
This table compares Enterprise Products Partners and BP Midstream Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enterprise Products Partners||$23.02 billion||2.60||$2.51 billion||$1.11||24.94|
|BP Midstream Partners||N/A||N/A||N/A||$0.42||50.43|
Enterprise Products Partners has higher revenue and earnings than BP Midstream Partners. Enterprise Products Partners is trading at a lower price-to-earnings ratio than BP Midstream Partners, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
37.6% of Enterprise Products 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Enterprise Products Partners beats BP Midstream Partners on 12 of the 14 factors compared between the two stocks.
About Enterprise Products Partners
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.
About BP Midstream Partners
BP Midstream Partners LP is a master limited partnership formed by BP Pipelines (North America) Inc. The Company owns, operates, develops and acquires pipelines and other midstream assets. It owns one onshore crude oil pipeline system, one onshore refined products pipeline system, one onshore diluent pipeline system, interests in four offshore crude oil pipeline systems and an interest in one offshore natural gas pipeline system. Its onshore crude oil, refined products and diluent pipelines include BP2 Pipeline, River Rouge Pipeline and Diamondback Pipeline. Its offshore crude oil and natural gas pipelines include Mars System, Caesar Pipeline, Cleopatra Pipeline, Proteus Pipeline and Endymion Pipeline.
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