Tallgrass Energy Partners, (NYSE: TEP) and Columbia Pipeline Partners (NYSE:CPPL) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Earnings and Valuation
This table compares Tallgrass Energy Partners, and Columbia Pipeline Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tallgrass Energy Partners,||$614.20 million||5.57||$351.11 million||$2.23||21.17|
|Columbia Pipeline Partners||N/A||N/A||N/A||$0.70||24.50|
Tallgrass Energy Partners, has higher revenue and earnings than Columbia Pipeline Partners. Tallgrass Energy 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 current recommendations for Tallgrass Energy Partners, and Columbia Pipeline Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tallgrass Energy Partners,||0||5||4||0||2.44|
|Columbia Pipeline Partners||0||3||0||0||2.00|
Tallgrass Energy Partners, presently has a consensus target price of $60.57, indicating a potential upside of 28.33%. Columbia Pipeline Partners has a consensus target price of $16.58, indicating a potential downside of 3.30%. Given Tallgrass Energy Partners,’s stronger consensus rating and higher probable upside, analysts plainly believe Tallgrass Energy Partners, is more favorable than Columbia Pipeline Partners.
Risk and Volatility
Tallgrass Energy Partners, has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Columbia Pipeline Partners has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
This table compares Tallgrass Energy Partners, and Columbia Pipeline Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tallgrass Energy Partners,||46.63%||20.47%||9.01%|
|Columbia Pipeline Partners||6.40%||0.92%||0.84%|
Institutional and Insider Ownership
66.8% of Tallgrass Energy Partners, shares are held by institutional investors. Comparatively, 88.2% of Columbia Pipeline Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Tallgrass Energy Partners, pays an annual dividend of $3.70 per share and has a dividend yield of 7.8%. Columbia Pipeline Partners pays an annual dividend of $0.79 per share and has a dividend yield of 4.6%. Tallgrass Energy Partners, pays out 165.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Tallgrass Energy Partners, has raised its dividend for 3 consecutive years. Tallgrass Energy Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Tallgrass Energy Partners, beats Columbia Pipeline Partners on 11 of the 13 factors compared between the two stocks.
About Tallgrass Energy Partners,
Tallgrass Energy Partners, LP owns, operates, acquires and develops midstream energy assets in North America. The Company operates through three segments: Crude Oil Transportation & Logistics, Natural Gas Transportation & Logistics and Processing & Logistics. The Crude Oil Transportation & Logistics segment includes the ownership and operation of a Federal Energy Regulatory Commission (FERC) crude oil pipeline system, and crude oil storage and terminaling facilities. The Natural Gas Transportation & Logistics segment is engaged in the ownership and operation of FERC regulated interstate natural gas pipelines and integrated natural gas storage facilities. The Processing & Logistics segment is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities; the provision of water business services primarily to the oil and gas exploration and production industry, and the transportation of natural gas liquids (NGLs).
About Columbia Pipeline Partners
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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