Critical Analysis: CNX Midstream Partners (NYSE:CNXM) and Antero Midstream Partners (AM)

CNX Midstream Partners (NYSE: CNXM) and Antero Midstream Partners (NYSE:AM) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares CNX Midstream Partners and Antero Midstream Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNX Midstream Partners $233.85 million 4.91 $114.99 million $1.72 10.50
Antero Midstream Partners $772.50 million 6.17 $307.31 million $1.40 18.21

Antero Midstream Partners has higher revenue and earnings than CNX Midstream Partners. CNX Midstream Partners is trading at a lower price-to-earnings ratio than Antero Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CNX Midstream Partners and Antero Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNX Midstream Partners 48.53% 15.38% 12.36%
Antero Midstream Partners 32.74% 18.34% 9.83%

Volatility & Risk

CNX Midstream Partners has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Antero Midstream Partners has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Institutional and Insider Ownership

19.8% of CNX Midstream Partners shares are owned by institutional investors. Comparatively, 49.5% 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

CNX Midstream Partners pays an annual dividend of $1.25 per share and has a dividend yield of 6.9%. Antero Midstream Partners pays an annual dividend of $1.46 per share and has a dividend yield of 5.7%. CNX Midstream Partners pays out 72.7% of its earnings in the form of a dividend. Antero Midstream Partners pays out 104.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Antero Midstream Partners has increased its dividend for 2 consecutive years. CNX Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CNX Midstream Partners and Antero Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNX Midstream Partners 0 3 5 0 2.63
Antero Midstream Partners 0 0 12 0 3.00

CNX Midstream Partners currently has a consensus price target of $23.63, suggesting a potential upside of 30.81%. Antero Midstream Partners has a consensus price target of $36.92, suggesting a potential upside of 44.83%. Given Antero Midstream Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Antero Midstream Partners is more favorable than CNX Midstream Partners.

Summary

Antero Midstream Partners beats CNX Midstream Partners on 12 of the 17 factors compared between the two stocks.

About CNX Midstream Partners

CNX Midstream Partners LP owns, operates, develops, and acquires natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. As of December 31, 2017, the company operates 18 compression and dehydration facilities. It also operates condensate handling facilities with handling capacities of 2,500 Bbl/d each in Majorsville, Pennsylvania, as well as Moundsville, West Virginia that provide condensate gathering, collection, separation, and stabilization services. CNX Midstream GP LLC serves as a general partner of the company. The company was formerly known as CONE Midstream Partners LP and changed its name to CNX Midstream Partners LP in January 2018. CNX Midstream Partners LP was founded in 2014 and is based in Canonsburg, Pennsylvania.

About Antero Midstream Partners

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.

Receive News & Ratings for CNX Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CNX Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply