Energy Transfer Equity LP Unit (NASDAQ: APLP) and Archrock Partners (NASDAQ:APLP) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Earnings & Valuation
This table compares Energy Transfer Equity LP Unit and Archrock Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Energy Transfer Equity LP Unit||$40.52 billion||0.50||$915.00 million||$1.21||14.44|
|Archrock Partners||$557.50 million||1.97||-$420,000.00||$0.27||56.67|
Energy Transfer Equity LP Unit has higher revenue and earnings than Archrock Partners. Energy Transfer Equity LP Unit is trading at a lower price-to-earnings ratio than Archrock Partners, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Energy Transfer Equity LP Unit has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Archrock Partners has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500.
Energy Transfer Equity LP Unit pays an annual dividend of $1.22 per share and has a dividend yield of 7.0%. Archrock Partners pays an annual dividend of $1.14 per share and has a dividend yield of 7.5%. Energy Transfer Equity LP Unit pays out 100.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Archrock Partners pays out 422.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Transfer Equity LP Unit has raised its dividend for 5 consecutive years.
This is a summary of current recommendations and price targets for Energy Transfer Equity LP Unit and Archrock Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy Transfer Equity LP Unit||0||1||12||0||2.92|
Energy Transfer Equity LP Unit presently has a consensus target price of $20.75, suggesting a potential upside of 18.78%. Archrock Partners has a consensus target price of $16.17, suggesting a potential upside of 5.66%. Given Energy Transfer Equity LP Unit’s stronger consensus rating and higher possible upside, analysts clearly believe Energy Transfer Equity LP Unit is more favorable than Archrock Partners.
Insider and Institutional Ownership
44.4% of Energy Transfer Equity LP Unit shares are held by institutional investors. Comparatively, 44.4% of Archrock Partners shares are held by institutional investors. 3.3% of Energy Transfer Equity LP Unit shares are held by insiders. Comparatively, 0.4% of Archrock Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Energy Transfer Equity LP Unit and Archrock Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy Transfer Equity LP Unit||2.60%||5.50%||1.85%|
Energy Transfer Equity LP Unit beats Archrock Partners on 13 of the 17 factors compared between the two stocks.
About Energy Transfer Equity LP Unit
Energy Transfer Equity, L.P. provides diversified energy-related services in the United States. It owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and approximately 11,800 miles of interstate natural gas pipelines. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. Its midstream operations include ownership and operation of natural gas and natural gas liquid (NGL) gathering pipelines, natural gas processing plants, natural gas treating facilities, and natural gas conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; a natural gas gathering system in Ohio; and transportation and supply of water to natural gas producers in Pennsylvania. The company's NGL transportation and services operations include ownership of approximately 4,300 miles of NGL pipelines, 5 NGL and propane fractionation facilities, and NGL storage facilities with aggregate working storage capacity of approximately 53 million barrels. It also sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. The company provides natural gas compression services; treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates a total of 75 megawatts electrical power. Energy Transfer Equity, L.P. was founded in 2002 and is based in Dallas, Texas.
About Archrock Partners
Archrock Partners, L.P., together with its subsidiaries, provides natural gas contract operations services to customers in the United States. The company's contract operations services primarily include designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining equipment to provide natural gas compression services to its customers. It serves companies engaged in various aspects of the oil and natural gas industry, including oil and natural gas producers, processors, gatherers, transporters, and storage providers. The company markets its services through sales and field service personnel. Archrock General Partner, L.P. operates as the general partner of the company. The company was formerly known as Exterran Partners, L.P. and changed its name to Archrock Partners, L.P. in November 2015. Archrock Partners, L.P. was founded in 2006 and is based in Houston, Texas.
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