San Juan Basin Royalty Trust (NYSE:SJT – Get Free Report) and Hess Midstream Partners (NYSE:HESM – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Valuation & Earnings
This table compares San Juan Basin Royalty Trust and Hess Midstream Partners”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| San Juan Basin Royalty Trust | N/A | N/A | -$390,000.00 | ($0.01) | -383.90 |
| Hess Midstream Partners | $1.62 billion | 4.11 | $352.90 million | $2.90 | 11.13 |
Analyst Ratings
This is a breakdown of recent recommendations for San Juan Basin Royalty Trust and Hess Midstream Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| San Juan Basin Royalty Trust | 1 | 0 | 0 | 0 | 1.00 |
| Hess Midstream Partners | 3 | 3 | 1 | 0 | 1.71 |
Hess Midstream Partners has a consensus target price of $37.00, indicating a potential upside of 14.59%. Given Hess Midstream Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Hess Midstream Partners is more favorable than San Juan Basin Royalty Trust.
Dividends
San Juan Basin Royalty Trust pays an annual dividend of $0.27 per share and has a dividend yield of 7.0%. Hess Midstream Partners pays an annual dividend of $3.16 per share and has a dividend yield of 9.8%. San Juan Basin Royalty Trust pays out -2,700.0% of its earnings in the form of a dividend. Hess Midstream Partners pays out 109.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hess Midstream Partners has raised its dividend for 8 consecutive years. Hess Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares San Juan Basin Royalty Trust and Hess Midstream Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| San Juan Basin Royalty Trust | N/A | -37.45% | -29.01% |
| Hess Midstream Partners | 23.23% | 92.18% | 8.62% |
Institutional & Insider Ownership
10.4% of San Juan Basin Royalty Trust shares are owned by institutional investors. Comparatively, 99.0% of Hess Midstream Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
San Juan Basin Royalty Trust has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Hess Midstream Partners has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Summary
Hess Midstream Partners beats San Juan Basin Royalty Trust on 13 of the 15 factors compared between the two stocks.
About San Juan Basin Royalty Trust
San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest in Southland’s oil and natural gas interests in properties located in the San Juan Basin in northwestern New Mexico. It also owns subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net-producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico. The company was founded in 1980 and is based in Dallas, Texas.
About Hess Midstream Partners
Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,410 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 660 million cubic feet per day; crude oil gathering system comprises approximately 570 miles of crude oil gathering pipelines; and produced water gathering system that includes approximately 300 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; crude oil rail cars; and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.
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