Head-To-Head Review: Kinder Morgan (KMI) and Boardwalk Pipeline Partners (BWP)

Kinder Morgan (NYSE:KMI) and Boardwalk Pipeline Partners (NYSE:BWP) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares Kinder Morgan and Boardwalk Pipeline Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kinder Morgan $14.14 billion 3.10 $1.61 billion $0.89 22.33
Boardwalk Pipeline Partners N/A N/A N/A N/A N/A

Kinder Morgan has higher revenue and earnings than Boardwalk Pipeline Partners.

Dividends

Kinder Morgan pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. Kinder Morgan pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boardwalk Pipeline Partners has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

63.9% of Kinder Morgan shares are owned by institutional investors. Comparatively, 92.6% of Boardwalk Pipeline Partners shares are owned by institutional investors. 14.2% of Kinder Morgan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Kinder Morgan and Boardwalk Pipeline Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinder Morgan 11.38% 5.86% 2.59%
Boardwalk Pipeline Partners N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Kinder Morgan and Boardwalk Pipeline Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinder Morgan 1 0 17 1 2.95
Boardwalk Pipeline Partners 0 4 1 0 2.20

Kinder Morgan currently has a consensus target price of $20.78, suggesting a potential upside of 4.59%. Boardwalk Pipeline Partners has a consensus target price of $14.52, suggesting a potential upside of 20.46%. Given Boardwalk Pipeline Partners’ higher possible upside, analysts clearly believe Boardwalk Pipeline Partners is more favorable than Kinder Morgan.

Summary

Kinder Morgan beats Boardwalk Pipeline Partners on 9 of the 13 factors compared between the two stocks.

Kinder Morgan Company Profile

Kinder Morgan, Inc. operates as an energy infrastructure company in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline and storage systems; natural gas and crude oil gathering systems, and natural gas processing and treating facilities; natural gas liquids (NGL) fractionation facilities and transportation systems; and liquefied natural gas facilities. The Products Pipelines segment owns and operates refined petroleum products, NGL, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that transload and store refined petroleum products, crude oil, ethanol, and chemicals, as well as bulk products, including coke, metals, and ores; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; and owns interests in/or operates oil fields and gas processing plants, as well as operates a crude oil pipeline system in West Texas. The company owns an interest in or operates approximately 84,000 miles of pipelines and 153 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1936 and is headquartered in Houston, Texas.

Boardwalk Pipeline Partners Company Profile

Boardwalk Pipeline Partners, LP, through its subsidiaries, owns and operates integrated natural gas and natural gas liquids and other hydrocarbons (NGLs) pipeline and storage systems in the United States. It operates interstate natural gas and NGLs pipeline systems, and integrated storage facilities, which are located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. The company's pipeline systems contain approximately 13,880 miles of interconnected natural gas pipelines, directly serving customers in 13 states and indirectly serving customers throughout the northeastern and southeastern United States through various interconnections with unaffiliated pipelines. It also owns and operates approximately 455 miles of NGLs pipelines serving customers in Louisiana and Texas. In addition, the company has underground storage caverns having aggregate capacity of approximately 205.0 billion cubic feet of working natural gas and 24.5 million barrels of NGLs. It serves producers of natural gas, local distribution companies, marketers, electric power generators, industrial users, and interstate and intrastate pipelines. The company was founded in 2005 and is headquartered in Houston, Texas. Boardwalk Pipeline Partners, LP is a subsidiary of Boardwalk Pipelines Holding Corp.

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