Comparing Summit Midstream (NYSE:SMC) & NGL Energy Partners (NYSE:NGL)

Earnings and Valuation

This table compares NGL Energy Partners and Summit Midstream”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NGL Energy Partners	$5.92 billion	0.10	-$143.76 million	($2.52)	-1.85
Summit Midstream	$429.62 million	0.93	-$38.95 million	($13.09)	-2.87

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

Insider & Institutional Ownership

40.6% of NGL Energy Partners shares are held by institutional investors. Comparatively, 43.0% of Summit Midstream shares are held by institutional investors. 5.3% of Summit Midstream shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares NGL Energy Partners and Summit Midstream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NGL Energy Partners	-3.57%	-29.77%	0.58%
Summit Midstream	-23.01%	0.71%	0.22%

Volatility and Risk

NGL Energy Partners has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Summit Midstream has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500.

Summary

Summit Midstream beats NGL Energy Partners on 6 of the 11 factors compared between the two stocks.

About NGL Energy Partners

NGL Energy Partners LP engages in the transportation, storage, blending, and marketing of crude oil, natural gas liquids, refined products / renewables, and water solutions. The company operates in three segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics. The Water Solutions segment transports, treats, recycles, and disposes produced and flowback water generated from oil and natural gas production; aggregates and sells recovered crude oil; disposes solids, such as tank bottoms, and drilling fluid and muds, as well as performs truck and frac tank washouts; and sells produced water for reuse and recycle, and brackish non-potable water. The Crude Oil Logistics segment purchases crude oil from producers and marketers, and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs; and provides storage, terminaling, and transportation services through pipelines. The Liquids Logistics segment supplies natural gas liquids, refined petroleum products, and biodiesel to commercial, retail, and industrial customers in the United States and Canada through its 24 terminals, third-party storage and terminal facilities, and nine common carrier pipelines, as well as through fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma.

About Summit Midstream

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.