Head to Head Analysis: Enlink Midstream (XTXI) and Marathon Petroleum (MPC)

Enlink Midstream (NASDAQ: XTXI) and Marathon Petroleum (NYSE:MPC) are both oil & gas refining and marketing – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Enlink Midstream and Marathon Petroleum’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enlink Midstream N/A N/A N/A ($0.52) -72.31
Marathon Petroleum $63.36 billion 0.55 $1.17 billion $3.26 21.91

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Enlink Midstream and Marathon Petroleum, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enlink Midstream 0 0 0 0 N/A
Marathon Petroleum 0 4 9 0 2.69

Marathon Petroleum has a consensus target price of $69.80, indicating a potential downside of 2.27%. Given Marathon Petroleum’s higher probable upside, analysts clearly believe Marathon Petroleum is more favorable than Enlink Midstream.

Dividends

Marathon Petroleum pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Enlink Midstream does not pay a dividend. Marathon Petroleum pays out 49.1% of its earnings in the form of a dividend. Enlink Midstream has raised its dividend for 7 consecutive years.

Profitability

This table compares Enlink Midstream and Marathon Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enlink Midstream N/A N/A N/A
Marathon Petroleum 2.35% 8.52% 3.71%

Institutional & Insider Ownership

80.6% of Marathon Petroleum shares are held by institutional investors. 1.1% of Marathon Petroleum shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Marathon Petroleum beats Enlink Midstream on 11 of the 13 factors compared between the two stocks.

About Enlink Midstream

Enlink Midstream Partners, L.P. is engaged, through its subsidiaries, in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs). The Company connects the wells of natural gas producers in the geographic areas of its gathering systems in order to gather for a fee or purchase the gas production, processes natural gas for the removal of NGLs, transports natural gas and NGLs and ultimately provides natural gas and NGLs to a variety of markets. In addition, it purchases natural gas and NGLs from producers not connected to its gathering systems for resale and markets natural gas and NGLs on behalf of producers for a fee. Its partnership interests consist of 19.7% limited partner interest in Crosstex Energy, L.P. (the Partnership), as of December 31, 2012, and 100% ownership interest in Crosstex Energy GP, LLC, the general partner of the Partnership, which owns a 2.0% general partner interest and all of the distribution rights in the Partnership.

About Marathon Petroleum

Marathon Petroleum Corporation is engaged in refining, marketing, retail and transportation businesses in the United States and the largest east of the Mississippi. The Company operates through three segments: Refining & Marketing; Speedway; and Midstream. The Refining & Marketing segment refines crude oil and other feedstocks at the Company’s seven refineries in the Gulf Coast and Midwest regions of the United States. Its Speedway segment sells transportation fuels and convenience products in the retail market in the Midwest, East Coast and Southeast regions of the United States. The Company’s Midstream is engaged in the operations of MPLX LP and certain other related operations. It gathers, processes and transports natural gas, natural gas liquids (NGLs), crude oil and refined products. MPLX is a limited partnership which owns, operates, develops and acquires midstream energy infrastructure assets.

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