NGL Energy Partners (NYSE: NGL – Get a rating) and Enterprise Product Partners (NYSE:EPD – Get a rating) are both oil/energy companies, but which is the better stock? We’ll compare the two companies based on earnings strength, valuation, risk, dividends, institutional ownership, profitability, and analyst recommendations.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of NGL Energy Partners and Enterprise Products Partners.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|NGL Energy Partners||$5.23 billion||0.05||-$639.82 million||($3.75)||-0.52|
|Enterprise Product Partners||$40.81 billion||1.39||$4.64 billion||$2.08||12.54|
Enterprise Products Partners has higher revenues and profits than NGL Energy Partners. NGL Energy Partners trades at a lower price-to-earnings ratio than Enterprise Products Partners, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
30.2% of the shares of NGL Energy Partners are held by institutional investors. By comparison, 27.3% of Enterprise Products Partners’ shares are held by institutional investors. 37.5% of the shares of Enterprise Products Partners are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.
This is a breakdown of the current recommendations and price targets for NGL Energy Partners and Enterprise Products Partners, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|NGL Energy Partners||0||0||0||0||N / A|
|Enterprise Product Partners||0||3||5||1||2.78|
Enterprise Products Partners has a consensus target price of $29.14, suggesting a potential upside of 11.74%. Given Enterprise Products Partners’ likely higher upside, analysts clearly believe that Enterprise Products Partners is more favorable than NGL Energy Partners.
This table compares the net margins, return on equity and return on assets of NGL Energy Partners and Enterprise Products Partners.
|Net margins||Return on equity||return on assets|
|NGL Energy Partners||-6.04%||-28.00%||-2.13%|
|Enterprise Product Partners||10.28%||18.08%||7.03%|
Risk and Volatility
NGL Energy Partners has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500. By comparison, Enterprise Products Partners has a beta of 1.15, suggesting that its stock price is its stock is 15% more volatile than the S&P 500.
Enterprise Products Partners beat NGL Energy Partners on 12 out of 14 factors compared between the two stocks.
About NGL Energy Partners (Get a rating)
NGL Energy Partners LP is engaged in the logistics of crude oil and liquids, and water solutions. The Company’s Crude Oil Logistics segment purchases crude oil from producers and traders and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, railroads, refineries and other commercial centres; and provides storage, terminal and pipeline transportation services. Its Water Solutions segment transports, treats, recycles and disposes of produced water and flowback water generated from oil and natural gas production; removes solids, such as tank bottoms, drilling fluids and muds, and washes trucks and frac tanks; and sells produced water for reuse and non-potable brackish water. The Company’s Liquids Logistics segment supplies natural gas liquids, refined petroleum products and biodiesel to commercial, retail and industrial customers in the United States and Canada through its 28 terminals, storage and third-party terminals and its public transport pipelines, as well as by fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia; and offers terminal and storage services. NGL Energy Holdings LLC is the general partner of the company. The company was founded in 1940 and is based in Tulsa, Oklahoma.
About Partners Enterprise Products (Get a rating)
Enterprise Products Partners LP provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals and refined products. The Company operates through four segments: NGL Pipelines and Services, Crude Oil Pipelines and Services, Natural Gas Pipelines and Services, and Petrochemicals and Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services. It operates 19 natural gas processing facilities located in Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming; NGL pipelines; NGL fractionation facilities; storage facilities for NGLs and related products; and NGL marine terminals. The Crude Oil Pipelines & Services segment operates crude oil pipelines; and crude oil marine and storage terminals, which include a fleet of 255 semi-trailer tankers used to transport crude oil. It is also engaged in crude oil marketing activities. The Gas Pipelines and Services segment operates gas pipeline networks to collect, process and transport natural gas. It leases underground salt-dome natural gas storage facilities in Napoleonville, Louisiana; owns an underground salt dome storage cavern in Wharton County, Texas; and markets natural gas. The Petrochemical and Refined Products Services segment operates propylene fractionation and related marketing activities; butane isomerization complex and associated deisobutanization operations; and facilities for octane improvement and production of high purity isobutylene. It also operates refined product pipelines and terminals; and ethylene export terminals, as well as refined product marketing and shipping services. The company was founded in 1968 and is based in Houston, Texas.
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