Hess Midstream Partners (NYSE:HESM – Get Free Report) and San Juan Basin Royalty Trust (NYSE:SJT – Get Free Report) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Valuation and Earnings
This table compares Hess Midstream Partners and San Juan Basin Royalty Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hess Midstream Partners | $1.61 billion | 4.84 | $352.90 million | $2.90 | 13.02 |
| San Juan Basin Royalty Trust | $10,000.00 | 17,595.28 | -$390,000.00 | ($0.01) | -377.50 |
Institutional and Insider Ownership
99.0% of Hess Midstream Partners shares are held by institutional investors. Comparatively, 10.4% of San Juan Basin Royalty Trust shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Hess Midstream Partners has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, San Juan Basin Royalty Trust has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Profitability
This table compares Hess Midstream Partners and San Juan Basin Royalty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hess Midstream Partners | 23.23% | 92.18% | 8.62% |
| San Juan Basin Royalty Trust | N/A | -37.45% | -29.01% |
Analyst Recommendations
This is a summary of current ratings for Hess Midstream Partners and San Juan Basin Royalty Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hess Midstream Partners | 3 | 3 | 1 | 0 | 1.71 |
| San Juan Basin Royalty Trust | 1 | 0 | 0 | 0 | 1.00 |
Hess Midstream Partners currently has a consensus target price of $37.00, suggesting a potential downside of 2.01%. Given Hess Midstream Partners’ stronger consensus rating and higher possible upside, equities analysts clearly believe Hess Midstream Partners is more favorable than San Juan Basin Royalty Trust.
Summary
Hess Midstream Partners beats San Juan Basin Royalty Trust on 11 of the 13 factors compared between the two stocks.
About Hess Midstream Partners
Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,410 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 660 million cubic feet per day; crude oil gathering system comprises approximately 570 miles of crude oil gathering pipelines; and produced water gathering system that includes approximately 300 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; crude oil rail cars; and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.
About San Juan Basin Royalty Trust
San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest in Southland’s oil and natural gas interests in properties located in the San Juan Basin in northwestern New Mexico. It also owns subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net-producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico. The company was founded in 1980 and is based in Dallas, Texas.
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