USA Compression Partners (NYSE:USAC – Get Free Report) and Summit Midstream (NYSE:SMC – Get Free Report) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.
Profitability
This table compares USA Compression Partners and Summit Midstream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Compression Partners | 10.48% | -62.46% | 3.35% |
| Summit Midstream | -23.01% | 0.71% | 0.22% |
Valuation & Earnings
This table compares USA Compression Partners and Summit Midstream”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USA Compression Partners | $950.45 million | 3.08 | $99.57 million | $0.73 | 34.08 |
| Summit Midstream | $449.92 million | 0.93 | -$38.95 million | ($12.81) | -3.06 |
Volatility & Risk
USA Compression Partners has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Summit Midstream has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for USA Compression Partners and Summit Midstream, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Compression Partners | 0 | 3 | 1 | 0 | 2.25 |
| Summit Midstream | 0 | 0 | 0 | 0 | 0.00 |
USA Compression Partners currently has a consensus target price of $27.50, suggesting a potential upside of 10.54%. Given USA Compression Partners’ stronger consensus rating and higher possible upside, equities analysts plainly believe USA Compression Partners is more favorable than Summit Midstream.
Insider & Institutional Ownership
47.8% of USA Compression Partners shares are held by institutional investors. Comparatively, 43.0% of Summit Midstream shares are held by institutional investors. 5.3% of Summit Midstream shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
USA Compression Partners beats Summit Midstream on 11 of the 14 factors compared between the two stocks.
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.
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.
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