KNOT Offshore Partners LP (KNOP) vs Summit Midstream Partners, LP (SMC)

KNOT Offshore Partners LP and Summit Midstream Partners, LP are both Oil & Gas Midstream companies. Summit Midstream Partners, LP is the larger, with a market value of $544.1M against $292.7M — 1.9× the size. Summit Midstream Partners, LP has negative trailing earnings, so its P/E is not meaningful; KNOT Offshore Partners LP trades at 21.2×. Summit Midstream Partners, LP grew revenue faster over the last twelve months: 20.9% against 12.9%. KNOT Offshore Partners LP has the higher net margin (3.46% vs −2.29%) and the higher return on invested capital (3.03% vs 2.59%). Across the 21 metrics below, KNOT Offshore Partners LP leads on 13 and Summit Midstream Partners, LP on 8.

Valuation

Metric KNOP SMC Oil & Gas Midstream median
P/E 21.21 n/m 11.68
P/S 0.77 0.63 2.39
P/B 0.55 0.43 1.68
Price to free cash flow 1.91 8.26 8.52
EV/EBITDA 5.30 7.74 9.03
EV/Sales 2.88 2.71 3.43
Earnings yield 4.71% (4.10%) 7.78%
Free cash flow yield 52.42% 12.11% 7.11%

Profitability

Metric KNOP SMC Oil & Gas Midstream median
Gross margin 63.67% 45.03% 54.87%
Operating margin 18.13% 15.10% 34.73%
Net margin 3.46% (2.29%) 20.12%
Free cash flow margin 40.24% 7.69% 14.43%
Return on equity 2.46% (1.57%) 11.73%
Return on assets 0.81% (0.55%) 4.43%
Return on invested capital 3.03% 2.59% 6.10%

Growth

Metric KNOP SMC Oil & Gas Midstream median
Revenue growth (TTM) 12.85% 20.94% 14.88%
EPS growth (last fiscal year) 128.57% 87.40% (7.78%)
Revenue growth, 5-year CAGR 5.47% 7.95% 10.05%
Net income growth, 5-year CAGR (22.27%) 0.00% 0.00%

Health

Metric KNOP SMC Oil & Gas Midstream median
Debt to equity 1.45 1.35 0.77
Current ratio 0.34 0.94 1.19
Net debt to EBITDA 4.37 5.27 3.46

Dividend

Metric KNOP SMC Oil & Gas Midstream median
Dividend yield 2.96% — 4.94%
Payout ratio 0.63 — 0.73

Size

Metric KNOP SMC Oil & Gas Midstream median
Market cap 292.66m 544.05m 3.56b

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