Financial Review: Hess Midstream (NYSE:HESM) vs. Delek Group (OTCMKTS:DGRLY)

Delek Group (OTCMKTS:DGRLY) and Hess Midstream (NYSE:HESM) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares Delek Group and Hess Midstream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Delek Group	N/A	N/A	N/A
Hess Midstream	13.06%	47.87%	4.80%

Earnings & Valuation

This table compares Delek Group and Hess Midstream”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Delek Group	$3.35 billion	N/A	$432.84 million	N/A	N/A
Hess Midstream	$1.35 billion	5.93	$118.60 million	$2.36	15.55

Delek Group has higher revenue and earnings than Hess Midstream.

Analyst Recommendations

This is a summary of recent recommendations for Delek Group and Hess Midstream, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Delek Group	0	0	0	0	0.00
Hess Midstream	0	2	1	0	2.33

Hess Midstream has a consensus price target of $38.67, indicating a potential upside of 5.36%. Given Hess Midstream’s stronger consensus rating and higher probable upside, analysts plainly believe Hess Midstream is more favorable than Delek Group.

Insider and Institutional Ownership

99.0% of Hess Midstream shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Hess Midstream beats Delek Group on 7 of the 9 factors compared between the two stocks.

About Delek Group

Delek Group Ltd., an energy company, develops, produces, and sells natural gas in Israel and internationally. The company operates through three segments: Energy in Israel, Energy Abroad, and Fuel Products. It holds interests in Tamar, Leviathan, and Aphrodite projects in the Mediterranean; holds rights to oil assets in the Gulf of Mexico and Canada, as well as oil and gas reserves in the North Sea off the coast of England; and owns production, treatment, and storage facilities. The company also operates gas stations with on-site convenience stores; and provides fuel storage and distribution services in Israel. In addition, it provides fuel products and other services, such as white products, comprising gasoline, diesel fuel, LPG, kerosene, jet fuel, and natural gas/CNG; black products, including fuel oil and bitumen; and industrial products, such as engine oils, lubricants, and greases. Further, the company offers services, such as restaurants, cafes, car wash services, etc.; ship services to refueling services at Israeli ports; and retail products comprising food products, beverages, cigarettes, and other products through Menta convenience stores, as well as sells car accessories. Additionally, it engages in the construction and operation of power plants; orchard management activities; processing, packaging, and marketing of fruits; and leasing activities. The company also supplies water for irrigation; cooling storage systems; and provides drinking water pumping services. As of December 31, 2019, it operated 160 convenience stores, including 25 franchised convenience stores, which have coffee and food sales points under the Cup O' Joe brand name. Delek Group Ltd. was founded in 1951 and is headquartered in Herzliya, Israel.

About Hess Midstream

Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,410 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 660 million cubic feet per day; crude oil gathering system comprises approximately 570 miles of crude oil gathering pipelines; and produced water gathering system that includes approximately 300 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; crude oil rail cars; and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.