Analyzing Summit Midstream (NYSE:SMC) & Transportadora de Gas del Sur (NYSE:TGS)

Volatility & Risk

Transportadora de Gas del Sur has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Summit Midstream has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500.

Valuation and Earnings

This table compares Transportadora de Gas del Sur and Summit Midstream”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transportadora de Gas del Sur	$1.73 billion	2.56	$89.37 million	$1.08	27.17
Summit Midstream	$449.92 million	0.97	-$38.95 million	($12.81)	-3.20

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

Profitability

This table compares Transportadora de Gas del Sur and Summit Midstream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transportadora de Gas del Sur	15.46%	7.31%	4.47%
Summit Midstream	-23.01%	0.71%	0.22%

Institutional and Insider Ownership

3.3% of Transportadora de Gas del Sur shares are owned by institutional investors. Comparatively, 43.0% of Summit Midstream shares are owned by institutional investors. 5.3% of Summit Midstream shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Transportadora de Gas del Sur beats Summit Midstream on 8 of the 11 factors compared between the two stocks.

About Transportadora de Gas del Sur

Transportadora de Gas del Sur S.A. engages in transportation of natural gas, and production and commercialization of natural gas liquids in Argentina and internationally. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Midstream; and Telecommunications. The Natural Gas Transportation segment transports natural gas through pipeline system to distribution companies, power plants, and industrial customers. It provides operation and maintenance services for the natural gas transportation facilities. The Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, liquid petroleum gas, natural gasoline, propane, and butane. This segment offers certain related services comprising reception, storage, and dispatch of the liquids. The Midstream segment provides natural gas conditioning services; treatment, removal of impurities and natural gas compression, including the collection and transport of natural gas; and inspection and maintenance of pipelines and compressor plants services. In addition, this segment offers steam generation for electricity production and management services for expansion works and steam generation for the production of electricity. The Telecommunications segment offers data transmission services through a network of digital terrestrial radio relay. It serves residential, commercial, industrial, and electric power generation end users. The company was incorporated in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.

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.