CNX Midstream Partners (NYSE: CNXM) and National Grid (NYSE:NGG) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Earnings & Valuation
Get CNX Midstream Partners alerts:This table compares CNX Midstream Partners and National Grid’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CNX Midstream Partners | $233.85 million | 5.22 | $114.99 million | $1.72 | 11.15 |
| National Grid | $20.22 billion | 1.86 | $4.71 billion | $3.93 | 14.25 |
National Grid has higher revenue and earnings than CNX Midstream Partners. CNX Midstream Partners is trading at a lower price-to-earnings ratio than National Grid, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
21.4% of CNX Midstream Partners shares are held by institutional investors. Comparatively, 5.4% of National Grid shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares CNX Midstream Partners and National Grid’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CNX Midstream Partners | 46.60% | 16.46% | 12.10% |
| National Grid | N/A | N/A | N/A |
Dividends
CNX Midstream Partners pays an annual dividend of $1.30 per share and has a dividend yield of 6.8%. National Grid pays an annual dividend of $4.08 per share and has a dividend yield of 7.3%. CNX Midstream Partners pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Grid pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
CNX Midstream Partners has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, National Grid has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for CNX Midstream Partners and National Grid, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CNX Midstream Partners | 0 | 3 | 4 | 0 | 2.57 |
| National Grid | 0 | 4 | 5 | 0 | 2.56 |
CNX Midstream Partners currently has a consensus target price of $23.57, indicating a potential upside of 22.96%. Given CNX Midstream Partners’ stronger consensus rating and higher probable upside, research analysts plainly believe CNX Midstream Partners is more favorable than National Grid.
Summary
CNX Midstream Partners beats National Grid on 9 of the 15 factors compared between the two stocks.
About CNX Midstream Partners
CNX Midstream Partners LP owns, operates, develops, and acquires natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. As of December 31, 2017, the company operates 18 compression and dehydration facilities. It also operates condensate handling facilities with handling capacities of 2,500 Bbl/d each in Majorsville, Pennsylvania, as well as Moundsville, West Virginia that provide condensate gathering, collection, separation, and stabilization services. CNX Midstream GP LLC serves as a general partner of the company. The company was formerly known as CONE Midstream Partners LP and changed its name to CNX Midstream Partners LP in January 2018. CNX Midstream Partners LP was founded in 2014 and is based in Canonsburg, Pennsylvania.
About National Grid
National Grid plc transmits and distributes electricity and natural gas. It operates through UK Electricity Transmission, UK Gas Transmission, and US Regulated segments. The UK Electricity Transmission segment owns and operates electricity transmission networks, which comprise approximately 7,200 kilometers of overhead lines; 1,500 kilometers of underground cables; and 346 substations located in England and Wales. It also operates the Scottish networks. The UK Gas Transmission segment owns and operates gas transmission systems that include approximately 7,660 kilometers of high pressure pipes and 24 compressor stations connecting 8 distribution networks in Great Britain. The US Regulated segment owns and operates transmission facilities across upstate New York, Massachusetts, New Hampshire, Rhode Island, and Vermont; and electricity distribution networks in upstate New York, Massachusetts, and Rhode Island. Its assets comprise 14,293 kilometers of overhead lines; 168 kilometers of underground cables; 387 transmission substations; and 740 distribution substations. This segment also engages in owning and operating gas distribution networks in upstate New York, New York City, Long Island, Massachusetts, and Rhode Island. The company is also involved in gas metering, property management, liquefied natural gas (LNG) importation terminal, and LNG operations, as well as the operation of Great Britain-France interconnector. National Grid plc was founded in 1990 and is headquartered in London, the United Kingdom.
