Hess Midstream Partners (NYSE:HESM – Get Free Report) and Cameco (NYSE:CCJ – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Risk and Volatility
Hess Midstream Partners has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Cameco has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Insider and Institutional Ownership
99.0% of Hess Midstream Partners shares are held by institutional investors. Comparatively, 70.2% of Cameco shares are held by institutional investors. 1.0% of Cameco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Hess Midstream Partners pays an annual dividend of $3.16 per share and has a dividend yield of 10.4%. Cameco pays an annual dividend of $0.17 per share and has a dividend yield of 0.2%. Hess Midstream Partners pays out 108.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cameco pays out 25.8% of its earnings in the form of a dividend. Hess Midstream Partners has raised its dividend for 8 consecutive years and Cameco has raised its dividend for 1 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 Hess Midstream Partners and Cameco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hess Midstream Partners | 23.49% | 94.12% | 8.72% |
| Cameco | 11.44% | 7.01% | 4.84% |
Analyst Ratings
This is a breakdown of current ratings for Hess Midstream Partners and Cameco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hess Midstream Partners | 3 | 5 | 1 | 0 | 1.78 |
| Cameco | 0 | 4 | 11 | 0 | 2.73 |
Hess Midstream Partners currently has a consensus price target of $33.25, suggesting a potential upside of 9.05%. Cameco has a consensus price target of $148.12, suggesting a potential upside of 103.25%. Given Cameco’s stronger consensus rating and higher probable upside, analysts clearly believe Cameco is more favorable than Hess Midstream Partners.
Valuation and Earnings
This table compares Hess Midstream Partners and Cameco”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hess Midstream Partners | $1.62 billion | 3.88 | $352.90 million | $2.92 | 10.44 |
| Cameco | $2.49 billion | 12.74 | $421.96 million | $0.66 | 110.42 |
Cameco has higher revenue and earnings than Hess Midstream Partners. Hess Midstream Partners is trading at a lower price-to-earnings ratio than Cameco, indicating that it is currently the more affordable of the two stocks.
Summary
Cameco beats Hess Midstream Partners on 10 of the 17 factors compared between the two stocks.
About Hess Midstream Partners
Hess Midstream LP owns and operates midstream infrastructure that gathers, processes, transports and stores crude oil, natural gas and natural gas liquids produced in the Bakken and Three Forks formations. Its services support oil and gas production in the Williston Basin of North Dakota. The company’s assets include crude oil and natural gas gathering systems, natural gas compression and processing facilities, and infrastructure for transporting and handling natural gas liquids. It also provides water gathering and disposal services used in oil and gas operations.
About Cameco
Cameco is a Canadian uranium company involved in the exploration, mining, milling, refining and conversion of uranium. Its operations include major uranium assets in Saskatchewan, and it has an interest in the Inkai uranium operation in Kazakhstan. The company supplies uranium and related products to nuclear energy producers around the world. Cameco also provides nuclear fuel services, including uranium conversion and the manufacture of fuel bundles for CANDU reactors. In addition, it owns a 49% interest in Westinghouse Electric Company, a supplier of nuclear power plant technologies, services and fuel.
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