EnLink Midstream (ENLC) vs. Its Competitors Critical Comparison

EnLink Midstream (NYSE: ENLC) is one of 50 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it weigh in compared to its peers? We will compare EnLink Midstream to related companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, risk and profitability.

Institutional and Insider Ownership

32.5% of EnLink Midstream shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 1.2% of EnLink Midstream shares are owned by company insiders. Comparatively, 9.2% of shares of all “Oil & Gas Transportation Services” companies are owned 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.

Profitability

This table compares EnLink Midstream and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EnLink Midstream 0.12% 0.15% 0.08%
EnLink Midstream Competitors 18.58% 88.32% 5.97%

Dividends

EnLink Midstream pays an annual dividend of $1.02 per share and has a dividend yield of 6.3%. EnLink Midstream pays out 3,401.1% 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 6.8% and pay out 159.9% of their earnings in the form of a dividend. EnLink Midstream has raised its dividend for 2 consecutive years. EnLink Midstream lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares EnLink Midstream and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
EnLink Midstream $4.25 billion -$460.00 million 536.85
EnLink Midstream Competitors $4.88 billion $288.25 million -19.10

EnLink Midstream’s peers have higher revenue and earnings than EnLink Midstream. EnLink Midstream is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

EnLink Midstream has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500. Comparatively, EnLink Midstream’s peers have a beta of 1.37, indicating that their average stock price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for EnLink Midstream and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnLink Midstream 1 9 1 0 2.00
EnLink Midstream Competitors 306 1835 2416 86 2.49

EnLink Midstream presently has a consensus price target of $18.80, suggesting a potential upside of 16.77%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 25.46%. Given EnLink Midstream’s peers stronger consensus rating and higher possible upside, analysts clearly believe EnLink Midstream has less favorable growth aspects than its peers.

Summary

EnLink Midstream peers beat EnLink Midstream on 13 of the 15 factors compared.

EnLink Midstream Company Profile

EnLink Midstream, LLC is an integrated midstream company. The Company’s assets consist of equity interests in EnLink Midstream Partners, LP (the Partnership) and EnLink Oklahoma Gas Processing, LP (EnLink Oklahoma T.O.). The Partnership is engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs), condensate and crude oil, as well as providing crude oil, condensate and brine services to producers. EnLink Oklahoma T.O., a partnership owned by the Partnership and the Company, is engaged in the gathering and processing of natural gas. The Partnership’s segments include Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Partnership connects the wells of producers in its market areas to its gathering systems, processes natural gas to remove NGLs, fractionates NGLs into purity products and markets those products for a fee, transports natural gas and provides natural gas to a range of markets.

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