Financial Contrast: EnLink Midstream (ENLC) versus Noble Midstream Partners (NBLX)

EnLink Midstream (NYSE: ENLC) and Noble Midstream Partners (NYSE:NBLX) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares EnLink Midstream and Noble Midstream Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EnLink Midstream $4.25 billion 0.71 -$460.00 million $0.03 555.19
Noble Midstream Partners $160.72 million 6.18 $74.44 million $3.70 13.39

Noble Midstream Partners has lower revenue, but higher earnings than EnLink Midstream. Noble Midstream Partners is trading at a lower price-to-earnings ratio than EnLink Midstream, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

34.1% of EnLink Midstream shares are held by institutional investors. Comparatively, 88.0% of Noble Midstream Partners shares are held by institutional investors. 1.2% of EnLink Midstream shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares EnLink Midstream and Noble Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnLink Midstream 0.12% 0.15% 0.08%
Noble Midstream Partners 55.83% 36.74% 24.51%

Analyst Recommendations

This is a summary of recent ratings and price targets for EnLink Midstream and Noble Midstream Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnLink Midstream 1 9 1 0 2.00
Noble Midstream Partners 0 2 6 0 2.75

EnLink Midstream currently has a consensus price target of $18.80, suggesting a potential upside of 12.91%. Noble Midstream Partners has a consensus price target of $51.86, suggesting a potential upside of 4.66%. Given EnLink Midstream’s higher probable upside, research analysts clearly believe EnLink Midstream is more favorable than Noble Midstream Partners.

Dividends

EnLink Midstream pays an annual dividend of $1.02 per share and has a dividend yield of 6.1%. Noble Midstream Partners pays an annual dividend of $1.87 per share and has a dividend yield of 3.8%. EnLink Midstream pays out 3,401.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Noble Midstream Partners pays out 50.5% of its earnings in the form of a dividend. Noble Midstream Partners has raised its dividend for 2 consecutive years.

Risk & Volatility

EnLink Midstream has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500. Comparatively, Noble Midstream Partners has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Summary

Noble Midstream Partners beats EnLink Midstream on 11 of the 17 factors compared between the two stocks.

EnLink Midstream Company Profile

EnLink Midstream, LLC is an integrated midstream company. The Company’s assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership’s segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.

Noble Midstream Partners Company Profile

Noble Midstream Partners LP is engaged in owning, operating, developing and acquiring a range of domestic midstream infrastructure assets. The Company’s areas of focus are in the area of Denver-Julesburg (DJ) Basin in Colorado and the Southern Delaware Basin position of the Permian Basin in Texas (Delaware Basin). Its segments include Gathering Systems, Fresh Water Delivery, and Investments in White Cliffs and Other. The Gathering Systems segment includes crude oil, natural gas and produced water gathering, as well as crude oil treating. It holds interest in White Cliffs Pipeline L.L.C. (the White Cliffs Interest). The Investments in White Cliffs and Other segment includes activity associated with the White Cliffs Interest. As of December 31, 2016, the White Cliffs Pipeline system consisted of two 527-mile crude oil pipelines that extended from the DJ Basin to the Cushing, Oklahoma. It provides crude oil, natural gas, and water-related midstream services for Noble Energy, Inc.

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