Usa Compression Partners (USAC) & Targa Pipeline Partners (APL) Financial Analysis

Usa Compression Partners (NYSE: USAC) and Targa Pipeline Partners (NYSE:APL) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Usa Compression Partners and Targa Pipeline Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Usa Compression Partners $265.92 million 4.09 $12.93 million $0.14 125.21
Targa Pipeline Partners N/A N/A N/A $0.89 30.02

Usa Compression Partners has higher revenue and earnings than Targa Pipeline Partners. Targa Pipeline Partners is trading at a lower price-to-earnings ratio than Usa Compression Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Usa Compression Partners and Targa Pipeline Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Usa Compression Partners 0 3 1 0 2.25
Targa Pipeline Partners 0 0 0 0 N/A

Usa Compression Partners currently has a consensus price target of $17.33, suggesting a potential downside of 1.12%. Given Usa Compression Partners’ higher possible upside, equities research analysts clearly believe Usa Compression Partners is more favorable than Targa Pipeline Partners.

Dividends

Usa Compression Partners pays an annual dividend of $2.10 per share and has a dividend yield of 12.0%. Targa Pipeline Partners does not pay a dividend. Usa Compression Partners pays out 1,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Usa Compression Partners has raised its dividend for 2 consecutive years and Targa Pipeline Partners has raised its dividend for 8 consecutive years.

Profitability

This table compares Usa Compression Partners and Targa Pipeline Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Usa Compression Partners 3.63% 1.62% 0.76%
Targa Pipeline Partners 14.09% 17.87% 9.56%

Summary

Targa Pipeline Partners beats Usa Compression Partners on 6 of the 11 factors compared between the two stocks.

Usa Compression Partners Company Profile

USA Compression Partners, LP is an independent provider of compression services in the United States. The Company provides compression services to its customers primarily in connection with infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and managing crude oil production through artificial lift processes. The Company engineers, designs, operates, services and repairs its compression units, and maintains related support inventory and equipment. It provides compression services in mature conventional basins, including gas lift applications on crude oil wells focused by horizontal drilling techniques. The Company provides compression services in various shale plays throughout the United States, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara and Fayetteville shales.

Targa Pipeline Partners Company Profile

Targa Pipeline Partners, L.P. (the Partnership), formerly Atlas Pipeline Partners, L.P., was formed by its parent, Targa Resources Corp., to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The Partnership is a provider of midstream natural gas, natural gas liquids (NGL), terminaling and crude oil gathering services in the United States. The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products.

Receive News & Ratings for Usa Compression Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Usa Compression Partners and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply