Hess Midstream Partners LP (HESM) vs Kinetik Holdings Inc. (KNTK)

Hess Midstream Partners LP and Kinetik Holdings Inc. are both Oil & Gas Midstream companies. Kinetik Holdings Inc. is the larger, with a market value of $8.0B against $6.3B — 1.3× the size. Hess Midstream Partners LP trades at the lower P/E: 10.5× against 16.3×. Kinetik Holdings Inc. grew revenue faster over the last twelve months: 15.8% against −0.60%. Hess Midstream Partners LP has the higher net margin (23.5% vs 0.00%) and the higher return on invested capital (15.7% vs 5.82%). Both pay a dividend; Hess Midstream Partners LP yields more (10.3% vs 6.57%). Across the 22 metrics below, Hess Midstream Partners LP leads on 14 and Kinetik Holdings Inc. on 8.

Valuation

Metric HESM KNTK Oil & Gas Midstream median
P/E 10.48 16.33 11.68
P/S 2.43 1.98 2.39
P/B 9.65 n/m 1.68
Price to free cash flow 4.33 16.68 8.52
EV/EBITDA 6.05 12.85 9.03
EV/Sales 4.68 3.97 3.43
Earnings yield 9.54% 6.12% 7.78%
Free cash flow yield 23.09% 6.00% 7.11%

Profitability

Metric HESM KNTK Oil & Gas Midstream median
Gross margin 100.00% 41.01% 54.87%
Operating margin 62.70% 12.17% 34.73%
Net margin 23.49% 0.00% 20.12%
Free cash flow margin 56.20% 11.88% 14.43%
Return on equity 90.65% 0.00% 11.73%
Return on assets 8.72% 0.00% 4.43%
Return on invested capital 15.70% 5.82% 6.10%

Growth

Metric HESM KNTK Oil & Gas Midstream median
Revenue growth (TTM) (0.60%) 15.79% 14.88%
EPS growth (last fiscal year) 14.86% 157.84% (7.78%)
Revenue growth, 5-year CAGR 8.23% 33.88% 10.05%
Net income growth, 5-year CAGR 71.19% 129.65% 0.00%

Health

Metric HESM KNTK Oil & Gas Midstream median
Debt to equity 8.90 (2.93) 0.77
Current ratio 0.25 0.64 1.19
Net debt to EBITDA 3.05 6.79 3.46

Dividend

Metric HESM KNTK Oil & Gas Midstream median
Dividend yield 10.30% 6.57% 4.94%
Payout ratio 1.08 1.08 0.73

Size

Metric HESM KNTK Oil & Gas Midstream median
Market cap 6.25b 7.98b 3.56b

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