Reviewing Continental Resources (CLR) & Hess Midstream Partners (HESM)

Continental Resources (NYSE: HESM) and Hess Midstream Partners (NYSE:HESM) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Continental Resources and Hess Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Continental Resources 0 10 20 0 2.67
Hess Midstream Partners 0 0 3 0 3.00

Continental Resources presently has a consensus target price of $69.63, suggesting a potential upside of 5.59%. Hess Midstream Partners has a consensus target price of $27.33, suggesting a potential upside of 20.73%. Given Hess Midstream Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Hess Midstream Partners is more favorable than Continental Resources.

Valuation & Earnings

This table compares Continental Resources and Hess Midstream Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Continental Resources $3.12 billion 7.95 $789.44 million $0.51 129.31
Hess Midstream Partners $565.80 million 1.09 $284.80 million N/A N/A

Continental Resources has higher revenue and earnings than Hess Midstream Partners.

Profitability

This table compares Continental Resources and Hess Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Continental Resources 32.80% 14.01% 4.98%
Hess Midstream Partners 10.34% 2.48% 2.40%

Risk and Volatility

Continental Resources has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Hess Midstream Partners has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Insider and Institutional Ownership

22.5% of Continental Resources shares are held by institutional investors. Comparatively, 51.3% of Hess Midstream Partners shares are held by institutional investors. 76.8% of Continental Resources 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.

Dividends

Hess Midstream Partners pays an annual dividend of $1.38 per share and has a dividend yield of 6.1%. Continental Resources does not pay a dividend.

Summary

Continental Resources beats Hess Midstream Partners on 9 of the 14 factors compared between the two stocks.

Continental Resources Company Profile

Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2016, its estimated proved reserves were 1,331 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 602 MMBoe. Continental Resources, Inc. was founded in 1967 and is based in Oklahoma City, Oklahoma.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP owns, operates, develops, and acquires midstream assets to provide 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 include natural gas and crude oil gathering and compression systems located primarily in McKenzie, Williams and Mountrail Counties, and North Dakota. Its gathering systems consists of approximately 1,200 miles of high and low pressure natural gas and NGL gathering pipelines with capacity of up to 345 MMcf/d, including an aggregate compression capacity of 174 MMcf/d; and crude oil gathering system comprises approximately 400 miles of crude oil gathering pipelines with capacity of up to 161 MBbl/d. The Processing and Storage segment consists of Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, 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; and crude oil rail cars, as well as Johnson's Corner Header System. The company was founded in 2014 and is based in Houston, Texas.

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