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 $8.7B against $6.3B — 1.4× the size. Hess Midstream Partners LP trades at the lower P/E: 10.6× against 19.8×. Kinetik Holdings Inc. grew revenue faster over the last twelve months: 14.2% against 2.78%. Hess Midstream Partners LP has the higher net margin (23.2% vs 10.4%) and the higher return on invested capital (15.4% vs 4.47%). Both pay a dividend; Hess Midstream Partners LP yields more (10.1% vs 5.80%). Across the 22 metrics below, Hess Midstream Partners LP leads on 15 and Kinetik Holdings Inc. on 7.

Valuation

Metric HESM KNTK Oil & Gas Midstream median
P/E 10.57 19.82 12.77
P/S 2.44 2.20 2.36
P/B 10.15 n/m 2.09
Price to free cash flow 4.70 33.68 9.71
EV/EBITDA 6.15 13.19 8.30
EV/Sales 4.72 4.30 3.88
Earnings yield 9.46% 5.05% 7.15%
Free cash flow yield 21.28% 2.97% 6.86%

Profitability

Metric HESM KNTK Oil & Gas Midstream median
Gross margin 100.00% 40.92% 56.58%
Operating margin 62.06% 10.52% 34.18%
Net margin 23.23% 10.41% 22.50%
Free cash flow margin 51.90% 6.54% 13.70%
Return on equity 83.74% (14.28%) 14.65%
Return on assets 8.64% 2.74% 5.00%
Return on invested capital 15.41% 4.47% 6.13%

Growth

Metric HESM KNTK Oil & Gas Midstream median
Revenue growth (TTM) 2.78% 14.15% 15.60%
EPS growth (last fiscal year) 14.86% 157.84% (7.86%)
Revenue growth, 5-year CAGR 8.23% 33.88% 9.59%
Net income growth, 5-year CAGR 71.19% 126.35% 0.00%

Health

Metric HESM KNTK Oil & Gas Midstream median
Debt to equity 9.48 (3.34) 0.78
Current ratio 0.77 0.68 1.19
Net debt to EBITDA 3.05 6.79 3.42

Dividend

Metric HESM KNTK Oil & Gas Midstream median
Dividend yield 10.07% 5.80% 4.54%
Payout ratio 1.06 1.16 0.76

Size

Metric HESM KNTK Oil & Gas Midstream median
Market cap 6.31b 8.68b 3.73b

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