Financial Comparison: Crestwood Midstream Partners (CMLP) versus VTTI Energy Partners (VTTI)

Crestwood Midstream Partners (NYSE: CMLP) and VTTI Energy Partners (NYSE:VTTI) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Dividends

VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Crestwood Midstream Partners does not pay a dividend. VTTI Energy Partners pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crestwood Midstream Partners has raised its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Crestwood Midstream Partners and VTTI Energy Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crestwood Midstream Partners N/A N/A N/A ($0.76) -8.13
VTTI Energy Partners N/A N/A N/A $0.81 24.07

Crestwood Midstream Partners is trading at a lower price-to-earnings ratio than VTTI Energy Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Crestwood Midstream Partners and VTTI Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crestwood Midstream Partners -9.82% -22.64% -10.70%
VTTI Energy Partners 35.11% 8.09% 7.61%

Analyst Recommendations

This is a summary of recent ratings for Crestwood Midstream Partners and VTTI Energy Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crestwood Midstream Partners 0 0 0 0 N/A
VTTI Energy Partners 0 2 0 0 2.00

VTTI Energy Partners has a consensus target price of $19.50, suggesting a potential upside of 0.00%. Given VTTI Energy Partners’ higher possible upside, analysts clearly believe VTTI Energy Partners is more favorable than Crestwood Midstream Partners.

Institutional & Insider Ownership

74.5% of VTTI Energy Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

VTTI Energy Partners beats Crestwood Midstream Partners on 8 of the 10 factors compared between the two stocks.

About Crestwood Midstream Partners

Crestwood Midstream Partners LP (Crestwood) develops, acquires, owns and operates primarily fee-based assets and operations within the energy midstream sector. The Company has three reporting segments: gathering and processing (G&P), providing natural gas gathering, processing, treating and compression services to producers in multiple unconventional shale plays; storage and transportation, which owns and operates natural gas storage facilities, and NGL and crude services, including crude oil rail terminals, the Arrow gathering system, its fleet of over-the-road crude oil and produced water transportation assets, an NGL storage facility, and US Salt, LLC. It provides infrastructure solutions across the value chain to service liquids-rich and crude oil shale plays across the United States. It owns and operates a portfolio of crude oil and natural gas gathering, processing, storage and transportation assets that connect fundamental energy supply with energy demand across North America.

About VTTI Energy Partners

VTTI Energy Partners LP provides terminaling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. The Company operates through the segment of energy storage terminaling business. Its assets consist of approximately 42.6% interest in VTTI MLP B.V., which owns a portfolio of over six terminals with over 400 tanks and approximately 35.7 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America. Its terminals are located in international supply and demand centers for refined petroleum products and crude oil and provide midstream infrastructure services to its customers at these international market hubs. It provides storage and terminaling services for energy industry participants, including marketing companies, integrated oil companies, national oil companies, distributors, and chemical and petrochemical companies.

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