EQT GP Holdings, (NYSE: EQGP) and Energen Corporation (NYSE:EGN) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
10.2% of EQT GP Holdings, shares are owned by institutional investors. Comparatively, 94.0% of Energen Corporation shares are owned by institutional investors. 1.0% of Energen Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
EQT GP Holdings, pays an annual dividend of $0.84 per share and has a dividend yield of 3.0%. Energen Corporation does not pay a dividend. EQT GP Holdings, pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations and price targets for EQT GP Holdings, and Energen Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EQT GP Holdings,||0||3||5||0||2.63|
EQT GP Holdings, currently has a consensus target price of $32.86, indicating a potential upside of 19.26%. Energen Corporation has a consensus target price of $66.00, indicating a potential upside of 30.85%. Given Energen Corporation’s higher probable upside, analysts plainly believe Energen Corporation is more favorable than EQT GP Holdings,.
This table compares EQT GP Holdings, and Energen Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EQT GP Holdings,||30.98%||12.14%||7.78%|
Risk and Volatility
EQT GP Holdings, has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Energen Corporation has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.
Earnings and Valuation
This table compares EQT GP Holdings, and Energen Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EQT GP Holdings,||$774.18 million||9.47||$620.07 million||$0.94||29.31|
|Energen Corporation||$686.19 million||7.14||$493.74 million||$0.63||80.06|
EQT GP Holdings, has higher revenue and earnings than Energen Corporation. EQT GP Holdings, is trading at a lower price-to-earnings ratio than Energen Corporation, indicating that it is currently the more affordable of the two stocks.
EQT GP Holdings, beats Energen Corporation on 9 of the 15 factors compared between the two stocks.
About EQT GP Holdings,
EQT GP Holdings, LP (EQGP) is a limited partnership company and subsidiary of EQT Gathering Holdings, LLC (EQT Gathering Holdings). The Company was formed to own EQT Corporation’s (EQT’s) partnership interests in EQT Midstream Partners, LP (EQM), a limited partnership formed by EQT to own, operate, acquire and develop midstream assets in the Appalachian Basin. Its segments include Gathering, and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. The Transmission segment includes EQM’s FERC-regulated interstate pipeline and storage business. EQGP has no independent operations. It has partnership interests in EQM. As of December 31, 2016, EQM provided midstream services to EQT and various third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two primary assets: the gathering system, and the transmission and storage system.
About Energen Corporation
Energen Corporation is an oil and natural gas exploration and production company. The Company is engaged in the exploration, development and production of oil and natural gas properties and natural gas. Its operations are conducted through subsidiary, Energen Resources Corporation and occur within the Midland Basin, the Delaware Basin and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. The Company is focused on increasing its oil, natural gas liquids and natural gas production and proved reserves through active development and/or exploratory programs in the Permian Basin. As of December 31, 2016, oil, natural gas liquids and natural gas represented approximately 60%, 20% and 20% of its reserves. As of December 31, 2016, its development activities added approximately 327 million barrels of oil equivalent (MMBOE) of reserves from the drilling of 623 gross development, exploratory and service wells and 73 well recompletions and pay-adds.
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