Kinder Morgan (NYSE:KMI – Get Free Report) and Summit Midstream (NYSE:SMC – Get Free Report) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
62.5% of Kinder Morgan shares are held by institutional investors. Comparatively, 43.0% of Summit Midstream shares are held by institutional investors. 12.8% of Kinder Morgan shares are held by company insiders. Comparatively, 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.
Analyst Ratings
This is a breakdown of current ratings and target prices for Kinder Morgan and Summit Midstream, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kinder Morgan | 0 | 7 | 5 | 1 | 2.54 |
| Summit Midstream | 0 | 0 | 0 | 0 | 0.00 |
Risk and Volatility
Kinder Morgan has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Summit Midstream has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500.
Earnings and Valuation
This table compares Kinder Morgan and Summit Midstream”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kinder Morgan | $15.15 billion | 4.01 | $2.39 billion | $1.14 | 23.97 |
| Summit Midstream | $449.92 million | 0.83 | -$38.95 million | ($12.81) | -2.75 |
Kinder Morgan has higher revenue and earnings than Summit Midstream. Summit Midstream is trading at a lower price-to-earnings ratio than Kinder Morgan, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kinder Morgan and Summit Midstream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kinder Morgan | 16.76% | 7.87% | 3.52% |
| Summit Midstream | -23.01% | 0.71% | 0.22% |
Summary
Kinder Morgan beats Summit Midstream on 14 of the 15 factors compared between the two stocks.
About Kinder Morgan
Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel and feedstocks, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. It owns and operates approximately 82,000 miles of pipelines and 139 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was incorporated in 2006 and is headquartered in Houston, 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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