NGL Energy Partners (NYSE: NGL – Get Rating) and Kinetik (NASDAQ: KNTK – Get Rating) are both oil/energy companies, but which is the better company? We’ll compare the two companies based on their dividend strength, valuation, earnings, profitability, analyst recommendations, risk, and institutional ownership.
This table compares the net margins, return on equity and return on assets of NGL Energy Partners and Kinetik.
|Net margins||Return on equity||return on assets|
|NGL Energy Partners||-6.04%||-28.00%||-2.13%|
This is a summary of recent ratings and price targets for NGL Energy Partners and Kinetik, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|NGL Energy Partners||1||0||0||0||1.00|
NGL Energy Partners currently has a consensus price target of $2.25, indicating a potential upside of 2.74%. Kinetik has a consensus price target of $72.00, indicating a potential upside of 2.04%. Given NGL Energy Partners’ possible higher upside, equity research analysts clearly believe that NGL Energy Partners is more favorable than Kinetik.
Insider and Institutional Ownership
28.7% of NGL Energy Partners shares are held by institutional investors. By comparison, 11.5% of Kinetik’s shares are held by institutional investors. 0.9% of Kinetik shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.
Valuation and benefits
This table compares revenue, earnings per share (EPS), and valuation of NGL Energy Partners and Kinetik.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|NGL Energy Partners||$5.23 billion||0.05||-$639.82 million||($3.75)||-0.58|
|Kinetic||$160.62 million||21.63||$99.22 million||$5.13||13.75|
Kinetik has lower revenues, but higher profits than NGL Energy Partners. NGL Energy Partners trades at a lower price-to-earnings ratio than Kinetik, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NGL Energy Partners has a beta of 2.36, which means its stock price is 136% more volatile than the S&P 500. In comparison, Kinetik has a beta of 3.28, which means its stock price is 228% more volatile than the S&P 500.
Kinetik beats NGL Energy Partners on 10 out of 13 factors compared between the two stocks.
NGL Energy Partners Company Profile (Get an evaluation)
NGL Energy Partners LP is engaged in the logistics of crude oil and liquids, and water solutions. The Company’s Crude Oil Logistics segment purchases crude oil from producers and traders and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, railroads, refineries and other commercial centres; and provides storage, terminal and pipeline transportation services. Its Water Solutions segment transports, treats, recycles and disposes of produced water and flowback water generated from oil and natural gas production; removes solids, such as tank bottoms, drilling fluids and muds, and washes trucks and frac tanks; and sells produced water for reuse and non-potable brackish water. The Company’s Liquids Logistics segment supplies natural gas liquids, refined petroleum products and biodiesel to commercial, retail and industrial customers in the United States and Canada through its 28 terminals, storage and third-party terminals and its public transport pipelines, as well as by fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia; and offers terminal and storage services. NGL Energy Holdings LLC is the general partner of the company. The company was founded in 1940 and is based in Tulsa, Oklahoma.
Kinetik Company Profile (Get an evaluation)
Kinetik Holdings Inc. operates as an intermediary company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing and processing services to companies that produce natural gas, natural gas liquids, crude oil and water. The company is headquartered in Midland, Texas.
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