EnLink Midstream (NYSE:ENLC) and Antero Midstream (NYSE:AM) are both mid-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Profitability
This table compares EnLink Midstream and Antero Midstream's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| EnLink Midstream | -30.33% | 3.18% | 1.26% |
| Antero Midstream | -36.71% | 19.07% | 8.73% |
Volatility and Risk
EnLink Midstream has a beta of 3.62, suggesting that its share price is 262% more volatile than the S&P 500. Comparatively, Antero Midstream has a beta of 3.42, suggesting that its share price is 242% more volatile than the S&P 500.
Insider and Institutional Ownership
34.8% of EnLink Midstream shares are held by institutional investors. Comparatively, 52.9% of Antero Midstream shares are held by institutional investors. 0.8% of EnLink Midstream shares are held by company insiders. Comparatively, 10.9% of Antero Midstream shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for EnLink Midstream and Antero Midstream, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| EnLink Midstream | 3 | 6 | 1 | 0 | 1.80 |
| Antero Midstream | 2 | 7 | 0 | 0 | 1.78 |
EnLink Midstream currently has a consensus target price of $3.25, suggesting a potential downside of 29.35%. Antero Midstream has a consensus target price of $6.1667, suggesting a potential downside of 33.48%. Given EnLink Midstream's stronger consensus rating and higher possible upside, analysts plainly believe EnLink Midstream is more favorable than Antero Midstream.
Earnings & Valuation
This table compares EnLink Midstream and Antero Midstream's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| EnLink Midstream | $6.05 billion | 0.37 | $-1,119,300,000.00 | $0.14 | 32.86 |
| Antero Midstream | $792.59 million | 5.58 | $-355,110,000.00 | $1.25 | 7.42 |
Antero Midstream has lower revenue, but higher earnings than EnLink Midstream. Antero Midstream is trading at a lower price-to-earnings ratio than EnLink Midstream, indicating that it is currently the more affordable of the two stocks.
Dividends
EnLink Midstream pays an annual dividend of $0.38 per share and has a dividend yield of 8.3%. Antero Midstream pays an annual dividend of $1.23 per share and has a dividend yield of 13.3%. EnLink Midstream pays out 271.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Antero Midstream pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EnLink Midstream has increased its dividend for 1 consecutive years and Antero Midstream has increased its dividend for 1 consecutive years. Antero Midstream is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Antero Midstream beats EnLink Midstream on 9 of the 16 factors compared between the two stocks.
