Comparing EnLink Midstream (ENLC) & Western Gas Equity Partners (WGP)

EnLink Midstream (NYSE:ENLC) and Western Gas Equity Partners (NYSE:WGP) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for EnLink Midstream and Western Gas Equity Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnLink Midstream 1 9 4 0 2.21
Western Gas Equity Partners 0 6 6 0 2.50

EnLink Midstream presently has a consensus target price of $17.77, indicating a potential upside of 9.96%. Western Gas Equity Partners has a consensus target price of $39.50, indicating a potential upside of 24.14%. Given Western Gas Equity Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Western Gas Equity Partners is more favorable than EnLink Midstream.

Dividends

EnLink Midstream pays an annual dividend of $1.07 per share and has a dividend yield of 6.6%. Western Gas Equity Partners pays an annual dividend of $2.33 per share and has a dividend yield of 7.3%. EnLink Midstream pays out -2,140.0% of its earnings in the form of a dividend. Western Gas Equity Partners pays out 135.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Western Gas Equity Partners has increased its dividend for 4 consecutive years. Western Gas Equity Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

32.4% of EnLink Midstream shares are held by institutional investors. Comparatively, 21.4% of Western Gas Equity Partners shares are held by institutional investors. 1.2% of EnLink Midstream shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

EnLink Midstream has a beta of 2.62, indicating that its share price is 162% more volatile than the S&P 500. Comparatively, Western Gas Equity Partners has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Profitability

This table compares EnLink Midstream and Western Gas Equity Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnLink Midstream 3.73% 0.86% 0.44%
Western Gas Equity Partners 17.52% 9.42% 4.36%

Earnings & Valuation

This table compares EnLink Midstream and Western Gas Equity 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 0.51 $212.80 million ($0.05) -323.20
Western Gas Equity Partners $2.25 billion 3.10 $376.60 million $1.72 18.50

Western Gas Equity Partners has lower revenue, but higher earnings than EnLink Midstream. EnLink Midstream is trading at a lower price-to-earnings ratio than Western Gas Equity Partners, indicating that it is currently the more affordable of the two stocks.

Summary

Western Gas Equity Partners beats EnLink Midstream on 12 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 operates as a former subsidiary of Devon Energy Corporation.

About Western Gas Equity Partners

Western Gas Equity Partners, LP, together with its subsidiaries, engages in the gathering, processing, compressing, treating, stabilizing, and transporting natural gas, condensate, natural gas liquids, and crude oil primarily in the United States. It is also involved in the gathering and disposing of produced water; and buying and selling of natural gas. Western Gas Equity Holdings, LLC serves as the general partner of Western Gas Equity Partners, LP. The company was founded in 2007 and is headquartered in The Woodlands, Texas. Western Gas Equity Partners, LP is a subsidiary of Anadarko Petroleum Corporation.

Receive News & Ratings for EnLink Midstream Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EnLink Midstream and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply