Analyzing Altagas (ATGFF) & CNX Midstream Partners (CNXM)

Altagas (OTCMKTS:ATGFF) and CNX Midstream Partners (NYSE:CNXM) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Valuation and Earnings

This table compares Altagas and CNX Midstream Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Altagas N/A N/A N/A N/A N/A
CNX Midstream Partners $256.67 million 3.62 $134.04 million $1.89 7.71

CNX Midstream Partners has higher revenue and earnings than Altagas.

Dividends

CNX Midstream Partners pays an annual dividend of $1.44 per share and has a dividend yield of 9.9%. Altagas does not pay a dividend. CNX Midstream Partners pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

53.1% of CNX Midstream Partners shares are owned by institutional investors. 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Altagas and CNX Midstream Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altagas 0 7 2 0 2.22
CNX Midstream Partners 0 3 4 0 2.57

CNX Midstream Partners has a consensus price target of $22.86, suggesting a potential upside of 56.23%. Given CNX Midstream Partners’ stronger consensus rating and higher probable upside, analysts plainly believe CNX Midstream Partners is more favorable than Altagas.

Profitability

This table compares Altagas and CNX Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altagas N/A N/A N/A
CNX Midstream Partners 52.22% 32.52% 15.08%

Summary

CNX Midstream Partners beats Altagas on 9 of the 10 factors compared between the two stocks.

Altagas Company Profile

AltaGas Ltd. operates as a diversified energy infrastructure company in North America. It operates through three segments: Gas, Power, and Utilities. The Gas segment engages in natural gas gathering and processing; natural gas liquids (NGL) extraction and separation, transmission, and storage; and natural gas and NGL marketing activities, as well as buying and selling natural gas. It serves customers in the Western Canada Sedimentary Basin. This segment operates 1.7 billion cubic feet per day (Bcf/d) of extraction processing capacity; approximately 1.1 Bcf/d of raw field gas processing capacity; and 30 gathering and processing facilities in Western Canada, as well as a network of approximately 5,000 kilometers of gathering and sales lines. The Power segment is involved in the generation and sale of electricity and ancillary services in Western Canada and the United States. As of December 31, 2017, it had 1,708 megawatts of gross power generation capacity from gas-fired, hydro, wind, and biomass plants. The Utilities segment operates regulated natural gas distribution utilities across North America, as well as a regulated natural gas storage utility in the United States serving approximately 580,000 customers. The company offers retail energy marketing services to residential, commercial, and industrial customers. AltaGas Ltd. was founded in 1993 and is headquartered in Calgary, Canada.

CNX Midstream Partners Company Profile

CNX Midstream Partners LP owns, operates, develops, and acquires natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. The company operates through two segments, Anchor Systems and Additional Systems. As of December 31, 2018, the company operated 14 compression and dehydration facilities. It also operates condensate handling facilities with handling capacities of 2,500 barrels per day in Majorsville, Pennsylvania, as well as Shirley, West Virginia that provide condensate gathering, collection, separation, and stabilization services. CNX Midstream GP LLC serves as a general partner of the company. The company was formerly known as CONE Midstream Partners LP and changed its name to CNX Midstream Partners LP in January 2018. CNX Midstream Partners LP was founded in 2014 and is based in Canonsburg, Pennsylvania.

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