Rice Midstream Partners (NYSE: RMP) and Transportadora de Gas del Sur (NYSE:TGS) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Risk and Volatility
Rice Midstream Partners has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Transportadora de Gas del Sur has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
This table compares Rice Midstream Partners and Transportadora de Gas del Sur’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rice Midstream Partners||59.40%||10.01%||8.61%|
|Transportadora de Gas del Sur||25.94%||72.92%||28.67%|
Rice Midstream Partners pays an annual dividend of $1.22 per share and has a dividend yield of 6.8%. Transportadora de Gas del Sur does not pay a dividend. Rice Midstream Partners has raised its dividend for 2 consecutive years.
Earnings and Valuation
This table compares Rice Midstream Partners and Transportadora de Gas del Sur’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rice Midstream Partners||$294.69 million||6.26||$177.97 million||N/A||N/A|
|Transportadora de Gas del Sur||$742.27 million||3.81||$168.71 million||$1.07||16.64|
Rice Midstream Partners has higher earnings, but lower revenue than Transportadora de Gas del Sur.
Institutional and Insider Ownership
74.1% of Rice Midstream Partners shares are owned by institutional investors. Comparatively, 9.6% of Transportadora de Gas del Sur shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Rice Midstream Partners and Transportadora de Gas del Sur, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rice Midstream Partners||0||16||2||0||2.11|
|Transportadora de Gas del Sur||1||1||0||0||1.50|
Rice Midstream Partners presently has a consensus price target of $21.75, suggesting a potential upside of 20.57%. Transportadora de Gas del Sur has a consensus price target of $25.00, suggesting a potential upside of 40.37%. Given Transportadora de Gas del Sur’s higher probable upside, analysts clearly believe Transportadora de Gas del Sur is more favorable than Rice Midstream Partners.
Rice Midstream Partners beats Transportadora de Gas del Sur on 8 of the 14 factors compared between the two stocks.
About Rice Midstream Partners
Rice Midstream Partners LP owns, operates, develops, and acquires midstream assets in the Appalachian Basin. It operates in two segments, Gathering and Compression, and Water Services. Its natural gas gathering and compression assets consist of natural gas gathering and compression systems that serve producers in the dry gas core of the Marcellus Shale in southwestern Pennsylvania. The company also provides water services to support well completion activities, as well as to collect and recycle or dispose of flowback and produced water in Washington and Greene counties, Pennsylvania; and Belmont County, Ohio. Rice Midstream Management LLC serves as the general partner of Rice Midstream Partners LP. The company was founded in 2014 and is headquartered in Pittsburgh, Pennsylvania.
About Transportadora de Gas del Sur
Transportadora de Gas del Sur S.A. provides natural gas transportation and distribution services in Argentina. The company operates through four segments: Natural Gas Transportation, Production and Commercialization of Liquids, Other Services, and Telecommunications. The Natural Gas Transportation segment transports natural gas through 5,706 miles of pipeline system to distribution companies, producers, and traders. As of December 31, 2016, it served 6.0 million residential, commercial, industrial, and electric power generation end-users. It also provides operation and maintenance services for the natural gas transportation facilities. The Production and Commercialization of Liquids segment produces and commercializes natural gas liquids, such as ethane, LPG, natural gasoline, propane, and butane in Argentina and internationally. The Other Services segment offers midstream services, including natural gas treatment, separation, and removal of impurities from the natural gas stream, as well as natural gas compression. It also provides services related to pipeline and compression plant construction, operation, and maintenance; and compressor plants services, as well as generates steam for electricity production. The Telecommunications segment provides telecommunication services for telecommunication operators and corporate customers. Its telecommunication network includes a microwave digital network with synchronous digital hierarchy technology and a dark fiber optic network. The company was founded in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.
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