Head-To-Head Analysis: Kinetik (NASDAQ:KNTK) vs. Equitrans Midstream (NYSE:ETRN)

Kinetik (NASDAQ:KNTKGet Rating) and Equitrans Midstream (NYSE:ETRNGet Rating) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Risk & Volatility

Kinetik has a beta of 3.28, suggesting that its stock price is 228% more volatile than the S&P 500. Comparatively, Equitrans Midstream has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500.

Profitability

This table compares Kinetik and Equitrans Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinetik 25.18% -11.27% 2.94%
Equitrans Midstream -104.82% 6.90% 1.81%

Analyst Recommendations

This is a summary of current recommendations for Kinetik and Equitrans Midstream, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinetik 0 0 4 0 3.00
Equitrans Midstream 0 5 2 0 2.29

Kinetik presently has a consensus price target of $76.00, indicating a potential upside of 6.82%. Equitrans Midstream has a consensus price target of $8.40, indicating a potential upside of 6.87%. Given Equitrans Midstream’s higher possible upside, analysts clearly believe Equitrans Midstream is more favorable than Kinetik.

Institutional & Insider Ownership

11.5% of Kinetik shares are held by institutional investors. Comparatively, 87.5% of Equitrans Midstream shares are held by institutional investors. 0.9% of Kinetik shares are held by insiders. Comparatively, 0.6% of Equitrans Midstream shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Kinetik and Equitrans Midstream’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kinetik $160.62 million 21.81 $99.22 million $5.13 13.87
Equitrans Midstream $1.32 billion 2.59 -$1.38 billion ($3.33) -2.36

Kinetik has higher earnings, but lower revenue than Equitrans Midstream. Equitrans Midstream is trading at a lower price-to-earnings ratio than Kinetik, indicating that it is currently the more affordable of the two stocks.

Dividends

Kinetik pays an annual dividend of $6.00 per share and has a dividend yield of 8.4%. Equitrans Midstream pays an annual dividend of $0.60 per share and has a dividend yield of 7.6%. Kinetik pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equitrans Midstream pays out -18.0% of its earnings in the form of a dividend.

Summary

Kinetik beats Equitrans Midstream on 11 of the 16 factors compared between the two stocks.

About Kinetik (Get Rating)

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.

About Equitrans Midstream (Get Rating)

Equitrans Midstream Corporation owns, operates, acquires, and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin. It operates through three segments: Gathering System, Transmission and Storage System, and Water Service System. The Gathering System segment include 1,130 miles of high-pressure gathering lines with compression of approximately 485,000 horsepower and multiple interconnect points; and approximately 910 miles of Federal Energy Regulatory Commission (FERC) low-pressure gathering lines. The Transmission and Storage System segment comprises 950 miles of FERC regulated interstate pipeline that connects to seven interstate pipelines and local distribution companies. The Water Service System segment include two independent systems comprised approximately 200 miles of pipeline that deliver fresh water from the Monongahela River, the Ohio River, local reservoirs, and various regional waterways. Equitrans Midstream Corporation was incorporated in 2018 and is headquartered in Canonsburg, Pennsylvania.

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