Summit Midstream (NYSE:SMC) versus Antero Midstream (NYSE:AM) Financial Comparison

Antero Midstream (NYSE:AM) and Summit Midstream (NYSE:SMC) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Risk & Volatility

Antero Midstream has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500. Comparatively, Summit Midstream has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500.

Valuation & Earnings

This table compares Antero Midstream and Summit Midstream”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Midstream	$1.15 billion	6.55	$371.79 million	$0.81	19.31
Summit Midstream	$449.92 million	0.89	-$38.95 million	($12.81)	-2.92

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Antero Midstream	36.16%	18.91%	7.03%
Summit Midstream	-23.01%	0.71%	0.22%

Analyst Ratings

This is a summary of recent ratings and target prices for Antero Midstream and Summit Midstream, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Midstream	1	2	0	0	1.67
Summit Midstream	0	0	0	0	0.00

Antero Midstream currently has a consensus price target of $15.00, indicating a potential downside of 4.09%. Given Antero Midstream’s stronger consensus rating and higher possible upside, analysts clearly believe Antero Midstream is more favorable than Summit Midstream.

Institutional and Insider Ownership

54.0% of Antero Midstream shares are held by institutional investors. Comparatively, 43.0% of Summit Midstream shares are held by institutional investors. 0.6% of Antero Midstream shares are held by insiders. Comparatively, 5.3% of Summit Midstream 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.

Summary

Antero Midstream beats Summit Midstream on 11 of the 13 factors compared between the two stocks.

About Antero Midstream

Antero Midstream Corporation owns, operates, and develops midstream energy assets in the Appalachian Basin. It operates in two segments, Gathering and Processing, and Water Handling. The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources' wells in West Virginia and Ohio. The Water Handling segment delivers fresh water from sources, including the Ohio River, local reservoirs, and various regional waterways; uses water handling systems to transport flowback and produced water; and offers pumping stations, water storage, and blending facilities. The company was founded in 2002 and is headquartered in Denver, Colorado.

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.