Analyzing Enterprise Products Partners L.P. (EPD) and Its Rivals

Enterprise Products Partners L.P. (NYSE: EPD) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its peers? We will compare Enterprise Products Partners L.P. to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.

Volatility and Risk

Enterprise Products Partners L.P. has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Enterprise Products Partners L.P.’s peers have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Valuation & Earnings

This table compares Enterprise Products Partners L.P. and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Enterprise Products Partners L.P. $26.33 billion $5.06 billion 20.55
Enterprise Products Partners L.P. Competitors $5.61 billion $1.30 billion 36.90

Enterprise Products Partners L.P. has higher revenue and earnings than its peers. Enterprise Products Partners L.P. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

37.9% of Enterprise Products Partners L.P. shares are held by institutional investors. Comparatively, 57.4% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 37.5% of Enterprise Products Partners L.P. shares are held by company insiders. Comparatively, 9.3% of shares of all “Oil & Gas Transportation Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Enterprise Products Partners L.P. pays an annual dividend of $1.68 per share and has a dividend yield of 6.4%. Enterprise Products Partners L.P. pays out 132.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.6% and pay out 172.5% of their earnings in the form of a dividend. Enterprise Products Partners L.P. has increased its dividend for 18 consecutive years.

Analyst Ratings

This is a summary of recent ratings and target prices for Enterprise Products Partners L.P. and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Products Partners L.P. 0 0 15 0 3.00
Enterprise Products Partners L.P. Competitors 379 2059 2462 109 2.46

Enterprise Products Partners L.P. presently has a consensus target price of $31.39, indicating a potential upside of 20.28%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 20.46%. Given Enterprise Products Partners L.P.’s peers higher probable upside, analysts clearly believe Enterprise Products Partners L.P. has less favorable growth aspects than its peers.

Profitability

This table compares Enterprise Products Partners L.P. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Products Partners L.P. 10.28% 12.04% 5.25%
Enterprise Products Partners L.P. Competitors 16.89% 14.24% 5.48%

Summary

Enterprise Products Partners L.P. peers beat Enterprise Products Partners L.P. on 9 of the 15 factors compared.

Enterprise Products Partners L.P. Company Profile

Enterprise Products Partners L.P. (Enterprise) is a provider of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals and refined products in North America. The Company’s segments include NGL Pipelines & Services; Crude Oil Pipelines & Services; Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The Company’s midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals, including liquefied petroleum gas (LPG); crude oil gathering, transportation, storage and terminals; petrochemical and refined products transportation, storage, export and import terminals, and related services, and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems.

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