Athlon Energy (NYSE: ATHL) and Williams Partners (NYSE:WPZ) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Valuation and Earnings
This table compares Athlon Energy and Williams Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Williams Partners||$8.01 billion||4.74||$871.00 million||$1.40||27.84|
Williams Partners has higher revenue and earnings than Athlon Energy. Williams Partners is trading at a lower price-to-earnings ratio than Athlon Energy, indicating that it is currently the more affordable of the two stocks.
Williams Partners pays an annual dividend of $2.40 per share and has a dividend yield of 6.2%. Athlon Energy does not pay a dividend. Williams Partners pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and price targets for Athlon Energy and Williams Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Williams Partners has a consensus target price of $46.22, suggesting a potential upside of 18.58%. Given Williams Partners’ higher probable upside, analysts clearly believe Williams Partners is more favorable than Athlon Energy.
Institutional & Insider Ownership
21.8% of Williams Partners shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Athlon Energy and Williams Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Williams Partners beats Athlon Energy on 9 of the 11 factors compared between the two stocks.
Athlon Energy Company Profile
Athlon Energy Inc., is an independent exploration and production company. The Company is a holding company and its sole assets are controlling equity interests in Athlon Holdings LP and its subsidiaries. The Company is focused on the acquisition, development and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. The Permian Basin spans portions of Texas and New Mexico and consists of three primary sub-basins: the Delaware Basin, the Central Basin Platform and the Midland Basin. The Company’s properties are located in the Midland Basin. In February 2014, Athlon Energy Inc announced that subsidiary, Athlon Holdings LP completed the acquisition of certain oil and natural gas properties and related assets in the Midland Basin of West Texas.
Williams Partners Company Profile
Williams Partners L.P. is an energy infrastructure company. The Company has operations across the natural gas value chain from gathering, processing, and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene, and other olefins. It operates through its Northeast G&P, Atlantic-Gulf, West segment. Under the Northeast G&P segment, it owns and operates fractionation facilities at Moundsville, de-ethanization and condensate facilities at its Oak Grove processing plant. The Atlantic Gulf segment includes the Company’s interstate natural gas pipeline, Transcontinental Gas Pipe Line Company, LLC. The West segment includes its interstate natural gas pipeline, Northwest Pipeline, and natural gas gathering processing and treating operations.
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