Hess Midstream Partners (NYSE:HESM) versus Black Stone Minerals (NYSE:BSM) Head to Head Contrast

Hess Midstream Partners (NYSE:HESM) and Black Stone Minerals (NYSE:BSM) are both mid-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Valuation & Earnings

This table compares Hess Midstream Partners and Black Stone Minerals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hess Midstream Partners	$1.50 billion	5.50	$223.10 million	$2.55	14.97
Black Stone Minerals	$433.70 million	6.26	$271.33 million	$0.92	13.98

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

Insider & Institutional Ownership

99.0% of Hess Midstream Partners shares are owned by institutional investors. Comparatively, 14.5% of Black Stone Minerals shares are owned by institutional investors. 17.8% of Black Stone Minerals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hess Midstream Partners and Black Stone Minerals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hess Midstream Partners	0	2	2	0	2.50
Black Stone Minerals	0	2	0	0	2.00

Hess Midstream Partners currently has a consensus target price of $43.50, suggesting a potential upside of 13.98%. Black Stone Minerals has a consensus target price of $14.00, suggesting a potential upside of 8.82%. Given Hess Midstream Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Hess Midstream Partners is more favorable than Black Stone Minerals.

Dividends

Hess Midstream Partners pays an annual dividend of $2.84 per share and has a dividend yield of 7.4%. Black Stone Minerals pays an annual dividend of $1.50 per share and has a dividend yield of 11.7%. Hess Midstream Partners pays out 111.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Stone Minerals pays out 163.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hess Midstream Partners has increased its dividend for 8 consecutive years.

Profitability

This table compares Hess Midstream Partners and Black Stone Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hess Midstream Partners	16.43%	54.89%	6.02%
Black Stone Minerals	55.74%	32.76%	22.26%

Risk and Volatility

Hess Midstream Partners has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Black Stone Minerals has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Summary

Hess Midstream Partners beats Black Stone Minerals on 11 of the 17 factors compared between the two stocks.

About Hess Midstream Partners

Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,410 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 660 million cubic feet per day; crude oil gathering system comprises approximately 570 miles of crude oil gathering pipelines; and produced water gathering system that includes approximately 300 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; crude oil rail cars; and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.

About Black Stone Minerals

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.6 million gross acres located in 41 states in the United States. The company was founded in 1876 and is based in Houston, Texas.