Transportadora de Gas del Sur (NYSE:TGS) and Enable Midstream Partners (NYSE:ENBL) are both mid-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
Transportadora de Gas del Sur pays an annual dividend of $1.54 per share and has a dividend yield of 10.3%. Enable Midstream Partners pays an annual dividend of $1.27 per share and has a dividend yield of 9.5%. Transportadora de Gas del Sur pays out 79.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enable Midstream Partners pays out 114.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Transportadora de Gas del Sur is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Transportadora de Gas del Sur has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Enable Midstream Partners has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Valuation & Earnings
This table compares Transportadora de Gas del Sur and Enable Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Transportadora de Gas del Sur||$918.84 million||2.56||$405.26 million||$1.95||7.69|
|Enable Midstream Partners||$3.43 billion||1.69||$521.00 million||$1.11||11.98|
Enable Midstream Partners has higher revenue and earnings than Transportadora de Gas del Sur. Transportadora de Gas del Sur is trading at a lower price-to-earnings ratio than Enable Midstream Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Transportadora de Gas del Sur and Enable Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Transportadora de Gas del Sur||33.04%||55.91%||22.56%|
|Enable Midstream Partners||15.21%||7.32%||4.35%|
Institutional & Insider Ownership
9.1% of Transportadora de Gas del Sur shares are held by institutional investors. Comparatively, 18.3% of Enable Midstream Partners shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Transportadora de Gas del Sur and Enable Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Transportadora de Gas del Sur||0||0||1||0||3.00|
|Enable Midstream Partners||0||2||3||0||2.60|
Enable Midstream Partners has a consensus price target of $17.80, indicating a potential upside of 33.83%. Given Enable Midstream Partners’ higher probable upside, analysts plainly believe Enable Midstream Partners is more favorable than Transportadora de Gas del Sur.
Transportadora de Gas del Sur beats Enable Midstream Partners on 8 of the 15 factors compared between the two stocks.
Transportadora de Gas del Sur Company Profile
Transportadora de Gas del Sur S.A. provides natural gas transportation and distribution services in Argentina. The company operates through four segments: Natural Gas Transportation, Liquids Production and Commercialization, Other Services, and Telecommunications. The Natural Gas Transportation segment transports natural gas through 5,706 miles of pipeline system to distribution companies, power plants, and industrial customers. As of December 31, 2017, it served 6.1 million residential, commercial, industrial, and electric power generation end-users. It also provides operation and maintenance services for the natural gas transportation facilities. The Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, LPG, natural gasoline, propane, and butane in Argentina and internationally. The Other Services segment offers midstream services, including natural gas treatment, separation, and removal of impurities from the natural gas stream, as well as natural gas compression. It also provides services related to pipeline and compression plant construction, operation, and maintenance; and generates steam for electricity production. The Telecommunications segment provides telecommunication services for telecommunication operators and corporate customers. Its telecommunication network includes a microwave digital network with synchronous digital hierarchy technology and a dark fiber optic network. The company was founded in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.
Enable Midstream Partners Company Profile
Enable Midstream Partners, LP owns, operates, and develops midstream energy infrastructure assets in the United States. The company operates in two segments, Gathering and Processing; and Transportation and Storage. The Gathering and Processing segment provides natural gas gathering, processing, and fractionation services in the Anadarko, Arkoma, and Ark-La-Tex basins, as well as crude oil gathering services in the Bakken Shale formation of the Williston Basin for its producer customers. The Transportation and Storage segment offers interstate and intrastate natural gas pipeline transportation and storage services to natural gas producers, utilities, and industrial customers. The company's natural gas gathering and processing assets are located in Oklahoma, Texas, Arkansas, and Louisiana; crude oil gathering assets are located in North Dakota; and natural gas transportation and storage assets extend from western Oklahoma and the Texas Panhandle to Louisiana, from Louisiana to Illinois, in Oklahoma, and from Louisiana to Alabama. As of December 31, 2018, its portfolio of midstream energy infrastructure assets included approximately 13,900 miles of gathering pipelines; 15 processing plants with 2.6 billion cubic feet per day of processing capacity; approximately 7,800 miles of interstate pipelines; approximately 2,300 miles of intrastate pipelines; and 8 natural gas storage facilities with 84.5 billion cubic feet of storage capacity. The company is based in Oklahoma City, Oklahoma. Enable Midstream Partners, LP is a subsidiary of CenterPoint Energy, Inc.
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