Summit Midstream (NYSE:SMC) & Antero Midstream (NYSE:AM) Financial Survey

Summit Midstream (NYSE:SMC) and Antero Midstream (NYSE:AM) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares Summit Midstream and Antero Midstream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Midstream	-23.01%	0.71%	0.22%
Antero Midstream	36.16%	18.91%	7.03%

Institutional and Insider Ownership

43.0% of Summit Midstream shares are owned by institutional investors. Comparatively, 54.0% of Antero Midstream shares are owned by institutional investors. 5.3% of Summit Midstream shares are owned by company insiders. Comparatively, 0.6% of Antero Midstream shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Summit Midstream and Antero Midstream, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Midstream	0	0	0	0	0.00
Antero Midstream	1	2	0	0	1.67

Antero Midstream has a consensus target price of $15.00, indicating a potential downside of 3.60%. Given Antero Midstream’s stronger consensus rating and higher probable upside, analysts plainly believe Antero Midstream is more favorable than Summit Midstream.

Earnings & Valuation

This table compares Summit Midstream and Antero Midstream”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Midstream	$449.92 million	0.90	-$38.95 million	($12.81)	-2.97
Antero Midstream	$1.15 billion	6.52	$371.79 million	$0.81	19.21

Antero Midstream has higher revenue and earnings than Summit Midstream. Summit Midstream is trading at a lower price-to-earnings ratio than Antero Midstream, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Summit Midstream has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, Antero Midstream has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500.

Summary

Antero Midstream beats Summit Midstream on 11 of the 12 factors compared between the two stocks.

About Summit Midstream

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.

About Antero Midstream

Antero Midstream Corporation owns, operates, and develops midstream energy assets in the Appalachian Basin. It operates in two segments, Gathering and Processing, and Water Handling. The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources' wells in West Virginia and Ohio. The Water Handling segment delivers fresh water from sources, including the Ohio River, local reservoirs, and various regional waterways; uses water handling systems to transport flowback and produced water; and offers pumping stations, water storage, and blending facilities. The company was founded in 2002 and is headquartered in Denver, Colorado.