Midcoast Energy Partners (NYSE: MEP) and American Midstream Partners, (NYSE:AMID) are both small-cap oil & gas refining and marketing – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.
This table compares Midcoast Energy Partners and American Midstream Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Midcoast Energy Partners||-5.25%||-34.51%||-2.64%|
|American Midstream Partners,||0.12%||-11.67%||-2.29%|
This is a summary of recent recommendations and price targets for Midcoast Energy Partners and American Midstream Partners,, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Midcoast Energy Partners||0||1||0||0||2.00|
|American Midstream Partners,||0||2||1||0||2.33|
Midcoast Energy Partners presently has a consensus target price of $8.00, suggesting a potential upside of 0.63%. American Midstream Partners, has a consensus target price of $16.33, suggesting a potential upside of 29.12%. Given American Midstream Partners,’s stronger consensus rating and higher probable upside, analysts plainly believe American Midstream Partners, is more favorable than Midcoast Energy Partners.
Earnings & Valuation
This table compares Midcoast Energy Partners and American Midstream Partners,’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Midcoast Energy Partners||N/A||N/A||N/A||($3.67)||-2.17|
|American Midstream Partners,||$232.68 million||3.98||-$3.47 million||($1.55)||-8.16|
Midcoast Energy Partners has higher revenue, but lower earnings than American Midstream Partners,. American Midstream Partners, is trading at a lower price-to-earnings ratio than Midcoast Energy Partners, indicating that it is currently the more affordable of the two stocks.
Midcoast Energy Partners pays an annual dividend of $1.43 per share and has a dividend yield of 18.0%. American Midstream Partners, pays an annual dividend of $1.65 per share and has a dividend yield of 13.0%. Midcoast Energy Partners pays out -39.0% of its earnings in the form of a dividend. American Midstream Partners, pays out -106.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Midstream Partners, has increased its dividend for 2 consecutive years.
Volatility & Risk
Midcoast Energy Partners has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500. Comparatively, American Midstream Partners, has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Insider and Institutional Ownership
64.7% of Midcoast Energy Partners shares are held by institutional investors. Comparatively, 42.1% of American Midstream Partners, shares are held by institutional investors. 5.4% of American Midstream Partners, shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
American Midstream Partners, beats Midcoast Energy Partners on 11 of the 14 factors compared between the two stocks.
About Midcoast Energy Partners
Midcoast Energy Partners, L.P. (MEP) is a limited partnership company that is engaged in the natural gas and natural gas liquids (NGL) midstream business. It operates through two segments: Gathering, Processing and Transportation, and Logistics and Marketing. It also provides marketing services of natural gas and NGLs to wholesale customers. The Company’s gathering, processing and transportation business includes natural gas and NGL gathering and transportation pipeline systems, natural gas processing and treating facilities, condensate stabilizers and an NGL fractionation facility. Its logistics and marketing business provides marketing services of natural gas, NGLs and condensate received from its gathering, processing and transportation business. The Company holds interest in Midcoast Operating, L.P., a Texas limited partnership that owns a network of natural gas and NGL gathering and transportation systems, natural gas processing and treating facilities.
About American Midstream Partners,
American Midstream Partners, LP owns, operates, develops and acquires a portfolio of midstream energy assets. The Company provides midstream infrastructure that links producers of natural gas, crude oil, natural gas liquids (NGLs), condensate and specialty chemicals to numerous intermediate and end-use markets. Its segments include gathering and processing, transmission and terminals. Through its segments, it is engaged in the business of gathering, treating, processing, and transporting natural gas; gathering, transporting, storing, treating and fractionating NGLs; gathering, storing and transporting crude oil and condensates, and storing specialty chemical products. Its gathering and processing assets are primarily located in the Permian Basin of West Texas; the Cotton Valley/Haynesville Shale of East Texas; the Eagle Ford Shale of South Texas; the Bakken Shale of North Dakota, and offshore in the Gulf of Mexico.
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