Noble Midstream Partners (NYSE: NBLX) and Columbia Pipeline Partners (NYSE:CPPL) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.
Insider and Institutional Ownership
78.6% of Noble Midstream Partners shares are owned by institutional investors. Comparatively, 88.2% of Columbia Pipeline Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Noble Midstream Partners pays an annual dividend of $1.78 per share and has a dividend yield of 4.0%. Columbia Pipeline Partners pays an annual dividend of $0.79 per share and has a dividend yield of 4.6%. Noble Midstream Partners pays out 67.2% of its earnings in the form of a dividend. Columbia Pipeline Partners pays out 112.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Noble Midstream Partners and Columbia Pipeline Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Noble Midstream Partners||50.57%||31.64%||24.40%|
|Columbia Pipeline Partners||6.40%||0.92%||0.84%|
Valuation & Earnings
This table compares Noble Midstream Partners and Columbia Pipeline Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Noble Midstream Partners||$203.73 million||7.80||$150.22 million||$2.65||16.68|
|Columbia Pipeline Partners||N/A||N/A||N/A||$0.70||24.50|
Noble Midstream Partners has higher revenue and earnings than Columbia Pipeline Partners. Noble Midstream Partners is trading at a lower price-to-earnings ratio than Columbia Pipeline Partners, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Noble Midstream Partners and Columbia Pipeline Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Noble Midstream Partners||0||2||10||0||2.83|
|Columbia Pipeline Partners||0||3||0||0||2.00|
Noble Midstream Partners presently has a consensus target price of $41.90, indicating a potential downside of 5.23%. Columbia Pipeline Partners has a consensus target price of $16.58, indicating a potential downside of 3.30%. Given Columbia Pipeline Partners’ higher possible upside, analysts plainly believe Columbia Pipeline Partners is more favorable than Noble Midstream Partners.
Noble Midstream Partners beats Columbia Pipeline Partners on 8 of the 11 factors compared between the two stocks.
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.
Columbia Pipeline Partners Company Profile
Columbia Pipeline Partners LP (the Partnership) is a limited partnership company operating a portfolio of pipelines, storage and related midstream assets. It is engaged in interstate gas transportation and storage services for local distribution companies (LDCs), marketers and industrial and commercial customers located in northeastern, mid-Atlantic, Midwestern and southern states, and the District of Columbia along with unregulated businesses that include midstream services, including gathering, treating, conditioning, processing, compression and liquids handling, and development of mineral rights positions. The Company owns, operates and develops a portfolio of pipelines, storage and related midstream assets. The Company has a general partner interest in CPG OpCo LP (Columbia OpCo), as well as a limited partner interest in Columbia OpCo, a limited partnership that owns the natural gas transmission and storage assets of Columbia Energy Group (CEG).
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