Summit Midstream (NYSE:SMC – Get Free Report) and USA Compression Partners (NYSE:USAC – Get Free Report) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.
Insider and Institutional Ownership
43.0% of Summit Midstream shares are held by institutional investors. Comparatively, 47.8% of USA Compression Partners shares are held by institutional investors. 5.3% of Summit Midstream shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Summit Midstream and USA Compression Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Summit Midstream | 0 | 0 | 0 | 0 | 0.00 |
| USA Compression Partners | 0 | 3 | 1 | 0 | 2.25 |
Volatility and Risk
Summit Midstream has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500. Comparatively, USA Compression Partners has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.
Valuation & Earnings
This table compares Summit Midstream and USA Compression Partners”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Summit Midstream | $449.92 million | 1.07 | -$38.95 million | ($12.81) | -3.51 |
| USA Compression Partners | $950.45 million | 3.33 | $99.57 million | $0.73 | 36.92 |
USA Compression Partners has higher revenue and earnings than Summit Midstream. Summit Midstream is trading at a lower price-to-earnings ratio than USA Compression Partners, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Summit Midstream and USA Compression Partners’ 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% |
| USA Compression Partners | 10.48% | -62.46% | 3.35% |
Summary
USA Compression Partners beats Summit Midstream on 11 of the 14 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 USA Compression Partners
USA Compression Partners, LP provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services, and repairs its compression units; and maintains related support inventory and equipment. It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales. As of December 31, 2017, the company had approximately 1,799,781 horsepower in its fleet. It serves oil companies; and independent producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was formerly known as Compression Holdings, LP, and changed its name to USA Compression Partners, LP in June 2011. USA Compression Partners, LP was founded in 1998 and is headquartered in Austin, Texas.
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