Financial Review: Teekay Offshore Partners L.P. (TOO) and EnLink Midstream Partners, (ENLK)
Teekay Offshore Partners L.P. (NYSE: TOO) and EnLink Midstream Partners, (NYSE:ENLK) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Insider and Institutional Ownership
52.5% of Teekay Offshore Partners L.P. shares are held by institutional investors. Comparatively, 41.7% of EnLink Midstream Partners, shares are held by institutional investors. 0.2% of EnLink Midstream Partners, shares are held by company insiders. 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 Teekay Offshore Partners L.P. and EnLink Midstream Partners,, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Teekay Offshore Partners L.P.||1||1||2||0||2.25|
|EnLink Midstream Partners,||0||3||5||0||2.63|
Teekay Offshore Partners L.P. currently has a consensus price target of $5.00, suggesting a potential upside of 108.33%. EnLink Midstream Partners, has a consensus price target of $19.50, suggesting a potential upside of 28.04%. Given Teekay Offshore Partners L.P.’s higher probable upside, research analysts plainly believe Teekay Offshore Partners L.P. is more favorable than EnLink Midstream Partners,.
Teekay Offshore Partners L.P. pays an annual dividend of $0.04 per share and has a dividend yield of 1.7%. EnLink Midstream Partners, pays an annual dividend of $1.56 per share and has a dividend yield of 10.2%. Teekay Offshore Partners L.P. pays out 8.2% of its earnings in the form of a dividend. EnLink Midstream Partners, pays out -650.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Teekay Offshore Partners L.P. has increased its dividend for 2 consecutive years. EnLink Midstream Partners, is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Teekay Offshore Partners L.P. has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500. Comparatively, EnLink Midstream Partners, has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.
Earnings & Valuation
This table compares Teekay Offshore Partners L.P. and EnLink Midstream Partners,’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Teekay Offshore Partners L.P.||$1.10 billion||0.34||$495.18 million||$0.49||4.90|
|EnLink Midstream Partners,||$4.92 billion||1.08||$754.70 million||($0.24)||-63.46|
EnLink Midstream Partners, has higher revenue and earnings than Teekay Offshore Partners L.P.. EnLink Midstream Partners, is trading at a lower price-to-earnings ratio than Teekay Offshore Partners L.P., indicating that it is currently the more affordable of the two stocks.
This table compares Teekay Offshore Partners L.P. and EnLink Midstream Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Teekay Offshore Partners L.P.||11.51%||5.24%||0.78%|
|EnLink Midstream Partners,||0.67%||1.05%||0.44%|
About Teekay Offshore Partners L.P.
Teekay Offshore Partners L.P. is a provider of marine transportation, oil production, storage, long-distance towing and offshore installation and maintenance and safety services to the offshore oil industry in North Sea, Brazil and the East Coast of Canada. The Company operates shuttle tankers; towage vessels; floating, production, storage and off-loading (FPSO) units; floating storage and off-take (FSO) units; units for maintenance and safety (UMS); long-distance towing and offshore installation vessels, and conventional crude oil tankers. Its segments include shuttle tanker segment, FPSO segment, FSO segment, conventional tanker segment, towage segment and UMS segment. Its fleet consists of over 30 shuttle tankers, such as over three chartered-in vessels and a HiLoad Dynamic Positioning unit, over six FPSO units, approximately seven FSO units, over six long-distance towing and offshore installation vessels, a UMS and over two conventional oil tankers.
About EnLink Midstream Partners,
EnLink Midstream Partners, LP is a midstream company. The Company’s business activities are conducted through its subsidiary, EnLink Midstream Operating, LP (the Operating Partnership) and the subsidiaries of the Operating Partnership. The Company operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Company focuses on providing midstream energy services, including gathering, processing, transmission, fractionation, storage, condensate stabilization, brine services and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate. As of December 31, 2016, its midstream energy asset network included approximately 11,000 miles of pipelines, 20 natural gas processing plants, seven fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain private midstream companies.
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