Antero Midstream Partners (NYSE: AM) and Eagle Rock Energy Partners, L.P. (NASDAQ:EROC) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

47.0% of Antero Midstream Partners shares are owned by institutional investors. 7.9% of Antero Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Antero Midstream Partners and Eagle Rock Energy Partners, L.P.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Antero Midstream Partners $682.01 million 8.77 $455.28 million $1.48 21.67
Eagle Rock Energy Partners, L.P. N/A N/A N/A N/A N/A

Antero Midstream Partners has higher revenue and earnings than Eagle Rock Energy Partners, L.P..

Analyst Recommendations

This is a breakdown of current ratings and target prices for Antero Midstream Partners and Eagle Rock Energy Partners, L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Midstream Partners 0 0 13 0 3.00
Eagle Rock Energy Partners, L.P. 0 0 0 0 N/A

Antero Midstream Partners currently has a consensus target price of $39.40, indicating a potential upside of 22.86%. Given Antero Midstream Partners’ higher possible upside, equities analysts plainly believe Antero Midstream Partners is more favorable than Eagle Rock Energy Partners, L.P..

Dividends

Antero Midstream Partners pays an annual dividend of $1.28 per share and has a dividend yield of 4.0%. Eagle Rock Energy Partners, L.P. does not pay a dividend. Antero Midstream Partners pays out 86.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Antero Midstream Partners and Eagle Rock Energy Partners, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Antero Midstream Partners 41.15% 21.03% 11.40%
Eagle Rock Energy Partners, L.P. -107.85% -31.24% -15.37%

Summary

Antero Midstream Partners beats Eagle Rock Energy Partners, L.P. on 9 of the 10 factors compared between the two stocks.

Antero Midstream Partners Company Profile

Antero Midstream Partners LP is a limited partnership formed by Antero Resources Corporation (Antero Resources) to own, operate and develop midstream energy assets to service Antero Resources’ production. The Company’s segments include gathering and compression, and water handling and treatment. The gathering and compression segment includes a network of gathering pipelines, compressor stations, and processing and fractionation plants that collect and process natural gas, natural gas liquids (NGLs) and oil from Antero Resources’ wells in West Virginia and Ohio. Its water handling and treatment segment includes two independent fresh water distribution systems from sources including the Ohio River, local reservoirs, as well as several regional waterways. The water handling and treatment segment also includes other fluid handling services which includes, high rate transfer, wastewater transportation, disposal and treatment.

Eagle Rock Energy Partners, L.P. Company Profile

Eagle Rock Energy Partners, L.P. is a limited partnership engaged in developing and producing oil and natural gas properties. The Company’s interests include operated and non-operated wells located in four oil and gas producing regions: The Mid-Continent region consists of operated and non-operated properties in the Golden Trend field, Cana (Woodford) shale play, Verden field and other fields located in the Anadarko Basin of western Oklahoma, the Mansfield field and other fields in the Arkoma Basin of Arkansas and Oklahoma, and various fields in the Texas Panhandle; The Alabama region includes the Big Escambia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama; The Permian region contains various fields, including Ward South and Ward-Estes North located in Ward, Pecos and Crane Counties, Texas, and East Texas/South Texas/Mississippi. These working interest properties included over 561 gross operated productive wells and over 1,217 gross non-operated wells.

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