Head to Head Analysis: Crestwood Equity Partners (NYSE:CEQP) & Chesapeake Utilities (NYSE:CPK)

Chesapeake Utilities (NYSE:CPK) and Crestwood Equity Partners (NYSE:CEQP) are both small-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Institutional & Insider Ownership

70.4% of Chesapeake Utilities shares are owned by institutional investors. Comparatively, 53.3% of Crestwood Equity Partners shares are owned by institutional investors. 3.1% of Chesapeake Utilities shares are owned by company insiders. Comparatively, 36.2% of Crestwood Equity Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Chesapeake Utilities and Crestwood Equity Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Utilities 14.35% 10.96% 3.52%
Crestwood Equity Partners -0.26% 5.18% 1.54%

Dividends

Chesapeake Utilities pays an annual dividend of $1.76 per share and has a dividend yield of 2.3%. Crestwood Equity Partners pays an annual dividend of $2.50 per share and has a dividend yield of 18.2%. Chesapeake Utilities pays out 48.1% of its earnings in the form of a dividend. Crestwood Equity Partners pays out 25,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chesapeake Utilities has raised its dividend for 16 consecutive years and Crestwood Equity Partners has raised its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Chesapeake Utilities and Crestwood Equity Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Utilities $479.60 million 2.64 $65.15 million $3.66 20.98
Crestwood Equity Partners $3.18 billion 0.32 $285.10 million $0.01 1,377.00

Crestwood Equity Partners has higher revenue and earnings than Chesapeake Utilities. Chesapeake Utilities is trading at a lower price-to-earnings ratio than Crestwood Equity Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chesapeake Utilities and Crestwood Equity Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Utilities 0 3 3 0 2.50
Crestwood Equity Partners 1 4 1 0 2.00

Chesapeake Utilities currently has a consensus target price of $100.67, suggesting a potential upside of 31.11%. Crestwood Equity Partners has a consensus target price of $11.17, suggesting a potential downside of 18.91%. Given Chesapeake Utilities’ stronger consensus rating and higher probable upside, analysts plainly believe Chesapeake Utilities is more favorable than Crestwood Equity Partners.

Risk & Volatility

Chesapeake Utilities has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Crestwood Equity Partners has a beta of 4.13, meaning that its share price is 313% more volatile than the S&P 500.

Summary

Chesapeake Utilities beats Crestwood Equity Partners on 12 of the 17 factors compared between the two stocks.

Chesapeake Utilities Company Profile

Chesapeake Utilities Corporation, a diversified energy company, engages in regulated and unregulated energy businesses. The company operates in two segments, Regulated Energy and Unregulated Energy. The Regulated Energy segment engages in the distribution of natural gas in Delaware, Maryland, and Florida; distribution of electricity in Florida; and transmission of natural gas on the Delmarva Peninsula and in Florida. The Unregulated Energy segment distributes propane in Delaware, Maryland, Virginia, Pennsylvania, and Florida; markets natural gas in Florida, Delaware, Maryland, Ohio, and other states; supplies, gathers, and processes unregulated natural gas in central and eastern Ohio; and generates electricity and steam. This segment also provides other unregulated energy services, such as energy-related merchandise sales; heating, ventilation, and air conditioning services; and plumbing and electrical services. It serves residential, commercial, industrial, and wholesale customers. The company was founded in 1859 and is headquartered in Dover, Delaware.

Crestwood Equity Partners Company Profile

Crestwood Equity Partners LP provides infrastructure solutions to liquids-rich natural gas and crude oil shale plays in the United States. It operates through three segments: Gathering and Processing (G&P); Storage and Transportation (S&T); and Marketing, Supply and Logistics (MS&L). The G&P segment offers gathering and transportation services for natural gas, crude oil, and produced water; and processing, treating, and compression services. The S&T segment provides crude oil and natural gas storage and transportation services to producers, utilities, and other customers. The MS&L segment offers natural gas liquid (NGL) and crude oil storage, as well as marketing and transportation services to producers, refiners, marketers, and other customers. The company owns and operates natural gas facilities with approximately 2.9 billion cubic feet of natural gas/day (Bcf/d) of gathering capacity and 0.9 Bcf/d of processing capacity; with approximately 2.5 MMBbls of storage capacity, as well as portfolio of transportation assets with a capacity of transporting approximately 1.3 MMBbls/day of NGLs; and crude oil facilities with approximately 125,000 Bbls/d of gathering capacity, 1.9 million barrels of storage capacity, 20,000 Bbls/d of transportation capacity, and 180,000 Bbls/d of rail loading capacity. It also has ownership interests in natural gas facilities with approximately 0.3 Bcf/d of gathering capacity, 0.2 Bcf/d of processing capacity, 75.8 Bcf of certificated working storage capacity, and 1.6 Bcf/d of transportation capacity; and crude oil facilities with approximately 380,000 Bbls of working storage capacity. Crestwood Equity GP LLC serves as the general partner of Crestwood Equity Partners LP. The company was formerly known as Inergy L.P. and changed its name to Crestwood Equity Partners LP in October 2013. Crestwood Equity Partners LP was founded in 2001 and is headquartered in Houston, Texas.

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