Head-To-Head Analysis: Hess Midstream (NYSE:HESM) and Shell (NYSE:SHEL)

Hess Midstream (NYSE:HESMGet Free Report) and Shell (NYSE:SHELGet Free Report) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Institutional and Insider Ownership

92.4% of Hess Midstream shares are owned by institutional investors. Comparatively, 28.6% of Shell shares are owned by institutional investors. 1.0% of Shell shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Hess Midstream pays an annual dividend of $2.74 per share and has a dividend yield of 7.4%. Shell pays an annual dividend of $2.75 per share and has a dividend yield of 4.2%. Hess Midstream pays out 116.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shell pays out 56.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hess Midstream and Shell, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hess Midstream 0 2 1 0 2.33
Shell 0 3 4 3 3.00

Hess Midstream presently has a consensus price target of $38.67, suggesting a potential upside of 5.13%. Shell has a consensus price target of $82.00, suggesting a potential upside of 24.19%. Given Shell’s stronger consensus rating and higher probable upside, analysts clearly believe Shell is more favorable than Hess Midstream.

Profitability

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

Net Margins Return on Equity Return on Assets
Hess Midstream 13.06% 47.87% 4.80%
Shell 5.17% 14.54% 6.86%

Earnings and Valuation

This table compares Hess Midstream and Shell”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hess Midstream $1.35 billion 5.95 $118.60 million $2.36 15.58
Shell $323.18 billion 0.63 $19.36 billion $4.86 13.59

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

Volatility & Risk

Hess Midstream has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Shell has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Summary

Shell beats Hess Midstream on 10 of the 17 factors compared between the two stocks.

About Hess Midstream

(Get Free Report)

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.

About Shell

(Get Free Report)

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

Receive News & Ratings for Hess Midstream Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hess Midstream and related companies with MarketBeat.com's FREE daily email newsletter.