Head to Head Review: EQT Midstream Partners (EQM) and Archrock Partners (APLP)

Share on StockTwits

EQT Midstream Partners (NYSE: EQM) 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 profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for EQT Midstream Partners and Archrock Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT Midstream Partners 0 5 8 0 2.62
Archrock Partners 0 4 1 0 2.20

EQT Midstream Partners presently has a consensus target price of $75.73, suggesting a potential upside of 32.55%. Archrock Partners has a consensus target price of $16.17, suggesting a potential upside of 5.66%. Given EQT Midstream Partners’ stronger consensus rating and higher possible upside, equities research analysts plainly believe EQT Midstream Partners is more favorable than Archrock Partners.

Dividends

EQT Midstream Partners pays an annual dividend of $4.26 per share and has a dividend yield of 7.5%. Archrock Partners pays an annual dividend of $1.14 per share and has a dividend yield of 7.5%. EQT Midstream Partners pays out 82.1% 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. EQT Midstream Partners has increased its dividend for 5 consecutive years. EQT Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

EQT Midstream Partners has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Archrock Partners has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Institutional & Insider Ownership

72.7% of EQT Midstream Partners shares are held by institutional investors. Comparatively, 44.4% of Archrock Partners shares are held by institutional investors. 0.4% of Archrock Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares EQT Midstream Partners and Archrock Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EQT Midstream Partners 65.11% 26.35% 16.29%
Archrock Partners -0.08% 3.74% 0.99%

Earnings & Valuation

This table compares EQT Midstream Partners and Archrock Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EQT Midstream Partners $834.10 million 5.52 $571.90 million $5.19 11.01
Archrock Partners $557.50 million 1.97 -$420,000.00 $0.27 56.67

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

Summary

EQT Midstream Partners beats Archrock Partners on 14 of the 17 factors compared between the two stocks.

About EQT Midstream Partners

EQT Midstream Partners, LP provides natural gas gathering, transmission, and storage services in Pennsylvania, West Virginia, and Ohio. The company owns, operates, acquires, and develops midstream assets in the Appalachian Basin. The company also owned approximately 300 miles of high pressure gathering lines and 1,500 miles of federal energy regulatory commission (FERC) regulated low pressure gathering lines; and approximately 950 miles of FERC regulated interstate pipelines. It serves local distribution companies, marketers, producers, and commercial and industrial users. EQT Midstream Services, LLC serves as the general partner of the company. EQT Midstream Partners, LP is headquartered in Pittsburgh, Pennsylvania.

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.

Receive News & Ratings for EQT Midstream Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EQT Midstream Partners and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply