Critical Review: Western Gas Partners, (WES) & Its Rivals

Western Gas Partners, (NYSE: WES) is one of 44 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its competitors? We will compare Western Gas Partners, to similar businesses based on the strength of its valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Western Gas Partners, and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Gas Partners, 26.41% 14.68% 7.24%
Western Gas Partners, Competitors -1.47% 2.21% 1.41%

Dividends

Western Gas Partners, pays an annual dividend of $3.62 per share and has a dividend yield of 7.8%. Western Gas Partners, pays out 294.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.0% and pay out 431.6% of their earnings in the form of a dividend. Western Gas Partners, has increased its dividend for 9 consecutive years. Western Gas Partners, is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Risk and Volatility

Western Gas Partners, has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Western Gas Partners,’s competitors have a beta of 1.34, meaning that their average share price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Western Gas Partners, and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Gas Partners, 1 4 7 0 2.50
Western Gas Partners, Competitors 379 1851 2461 112 2.48

Western Gas Partners, presently has a consensus target price of $60.45, suggesting a potential upside of 30.01%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 3.82%. Given Western Gas Partners,’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Western Gas Partners, is more favorable than its competitors.

Institutional & Insider Ownership

60.0% of Western Gas Partners, shares are held by institutional investors. Comparatively, 47.5% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 0.0% of Western Gas Partners, shares are held by insiders. Comparatively, 11.0% of shares of all “Oil & Gas Refining and Marketing” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Western Gas Partners, and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Western Gas Partners, $1.80 billion $591.33 million 37.80
Western Gas Partners, Competitors $40.28 billion $687.43 million 255.34

Western Gas Partners,’s competitors have higher revenue and earnings than Western Gas Partners,. Western Gas Partners, is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Western Gas Partners, beats its competitors on 9 of the 15 factors compared.

Western Gas Partners, Company Profile

Western Gas Partners, LP is a master limited partnership (MLP) that acquires, owns, develops and operates midstream energy assets. The Company is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil in the United States. The Company provides midstream services for Anadarko Petroleum Corporation (Anadarko), as well as for third-party producers and customers. The Company’s operations and activities are managed by its general partner, which is indirectly controlled by Anadarko through Western Gas Equity Partners, LP (WGP). As of December 31, 2016, its assets and investments consisted of gathering systems, treating facilities, natural gas processing plants/trains, NGL pipelines, natural gas pipelines and oil pipelines. These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania and Texas.

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