USA Compression Partners (NYSE:USAC) and Antero Midstream (NYSE:AM) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
Analyst Ratings
This is a summary of current recommendations and price targets for USA Compression Partners and Antero Midstream, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| USA Compression Partners | 1 | 3 | 1 | 0 | 2.00 |
| Antero Midstream | 3 | 5 | 0 | 0 | 1.63 |
USA Compression Partners currently has a consensus target price of $13.60, suggesting a potential downside of 10.94%. Antero Midstream has a consensus target price of $7.10, suggesting a potential downside of 17.92%. Given USA Compression Partners' stronger consensus rating and higher possible upside, research analysts plainly believe USA Compression Partners is more favorable than Antero Midstream.
Dividends
USA Compression Partners pays an annual dividend of $2.10 per share and has a dividend yield of 13.8%. Antero Midstream pays an annual dividend of $1.23 per share and has a dividend yield of 14.2%. USA Compression Partners pays out 7,000.0% 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. USA Compression Partners has raised its dividend for 1 consecutive years and Antero Midstream has raised its dividend for 1 consecutive years. Antero Midstream is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares USA Compression Partners and Antero Midstream's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| USA Compression Partners | $698.36 million | 2.12 | $39.13 million | $0.03 | 509.00 |
| Antero Midstream | $792.59 million | 5.20 | $-355,110,000.00 | $1.25 | 6.92 |
USA Compression Partners has higher earnings, but lower revenue than Antero Midstream. Antero Midstream is trading at a lower price-to-earnings ratio than USA Compression Partners, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
USA Compression Partners has a beta of 2.25, meaning that its stock price is 125% more volatile than the S&P 500. Comparatively, Antero Midstream has a beta of 3.42, meaning that its stock price is 242% more volatile than the S&P 500.
Profitability
This table compares USA Compression Partners and Antero Midstream's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| USA Compression Partners | -86.71% | 4.49% | 0.89% |
| Antero Midstream | -36.71% | 19.07% | 8.73% |
Institutional & Insider Ownership
25.5% of USA Compression Partners shares are owned by institutional investors. Comparatively, 52.9% of Antero Midstream shares are owned by institutional investors. 10.9% of Antero Midstream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Antero Midstream beats USA Compression Partners on 11 of the 16 factors compared between the two stocks.
