Enterprise Products Partners (NYSE:EPD) and Energy Transfer LP Unit (NYSE:ET) are both large-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Valuation & Earnings

This table compares Enterprise Products Partners and Energy Transfer LP Unit’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise Products Partners $36.53 billion 1.67 $4.17 billion $1.94 14.54
Energy Transfer LP Unit $40.52 billion 0.43 $915.00 million $1.21 12.44

Enterprise Products Partners has higher earnings, but lower revenue than Energy Transfer LP Unit. Energy Transfer LP Unit is trading at a lower price-to-earnings ratio than Enterprise Products Partners, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Enterprise Products Partners has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Energy Transfer LP Unit has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Dividends

Enterprise Products Partners pays an annual dividend of $1.74 per share and has a dividend yield of 6.2%. Energy Transfer LP Unit pays an annual dividend of $1.22 per share and has a dividend yield of 8.1%. Enterprise Products Partners pays out 89.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Transfer LP Unit pays out 100.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enterprise Products Partners has increased its dividend for 20 consecutive years.

Insider and Institutional Ownership

36.8% of Enterprise Products Partners shares are owned by institutional investors. Comparatively, 61.1% of Energy Transfer LP Unit shares are owned by institutional investors. 37.5% of Enterprise Products Partners shares are owned by insiders. Comparatively, 3.3% of Energy Transfer LP Unit shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Enterprise Products Partners and Energy Transfer LP Unit, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Products Partners 1 17 1 3.00
Energy Transfer LP Unit 5 3.00

Enterprise Products Partners currently has a consensus target price of $32.59, indicating a potential upside of 15.52%. Energy Transfer LP Unit has a consensus target price of $19.67, indicating a potential upside of 30.68%. Given Energy Transfer LP Unit’s higher probable upside, analysts plainly believe Energy Transfer LP Unit is more favorable than Enterprise Products Partners.

Profitability

This table compares Enterprise Products Partners and Energy Transfer LP Unit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Products Partners 11.42% 18.34% 7.53%
Energy Transfer LP Unit 2.58% 5.68% 1.98%

Summary

Enterprise Products Partners beats Energy Transfer LP Unit on 12 of the 17 factors compared between the two stocks.

Enterprise Products Partners Company Profile

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services, as well as NGL export docks and related services. It operates approximately 19,600 miles of NGL pipelines; NGL and related product storage facilities; 14 NGL fractionators; and a liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,800 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 495 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,700 miles of natural gas pipeline systems to gather and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It leases underground salt dome natural gas storage facilities in Texas and Louisiana; owns an underground salt dome storage cavern in Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related activities, including 800 miles of pipelines; butane isomerization complex, associated deisobutanizer units, and related pipeline assets; and octane enhancement and high purity isobutylene production facilities. It also operates approximately 4,100 miles of refined products pipelines; and terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.

Energy Transfer LP Unit Company Profile

Energy Transfer LP provides diversified energy-related services in the United States. It owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and approximately 11,800 miles of interstate natural gas pipelines. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. It owns and operates natural gas and natural gas liquid (NGL) gathering pipelines, as well as natural gas processing plants, treating facilities, and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; a natural gas gathering system in Ohio; and transportation and supply of water to natural gas producers in Pennsylvania. The company also owns approximately 4,300 miles of NGL pipelines, 5 NGL and propane fractionation facilities, and NGL storage facilities with aggregate working storage capacity of approximately 53 million barrels. It also sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. The company provides natural gas compression services; treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates a total of 75 megawatts electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. The company was founded in 2002 and is based in Dallas, Texas.

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