Oasis Midstream Partners (OMP) & Its Competitors Critical Review

Oasis Midstream Partners (NASDAQ: OMP) is one of 37 publicly-traded companies in the “Drilling oil & gas wells” industry, but how does it weigh in compared to its rivals? We will compare Oasis Midstream Partners to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Profitability

This table compares Oasis Midstream Partners and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oasis Midstream Partners 2.50% 16.58% 8.16%
Oasis Midstream Partners Competitors -96.96% -21.77% -6.76%

Risk and Volatility

Oasis Midstream Partners has a beta of 2.69, meaning that its stock price is 169% more volatile than the S&P 500. Comparatively, Oasis Midstream Partners’ rivals have a beta of 2.45, meaning that their average stock price is 145% more volatile than the S&P 500.

Institutional and Insider Ownership

7.1% of Oasis Midstream Partners shares are owned by institutional investors. Comparatively, 50.2% of shares of all “Drilling oil & gas wells” companies are owned by institutional investors. 2.2% of shares of all “Drilling oil & gas wells” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Oasis Midstream Partners and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oasis Midstream Partners 0 0 0 0 N/A
Oasis Midstream Partners Competitors 883 2334 1937 78 2.23

As a group, “Drilling oil & gas wells” companies have a potential upside of 31.50%. Given Oasis Midstream Partners’ rivals higher possible upside, analysts clearly believe Oasis Midstream Partners has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Oasis Midstream Partners and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Oasis Midstream Partners $410.19 million $122.12 million 2.94
Oasis Midstream Partners Competitors $1.04 billion -$296.25 million 0.64

Oasis Midstream Partners’ rivals have higher revenue, but lower earnings than Oasis Midstream Partners. Oasis Midstream Partners is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Oasis Midstream Partners pays an annual dividend of $2.16 per share and has a dividend yield of 21.6%. Oasis Midstream Partners pays out 63.3% of its earnings in the form of a dividend. As a group, “Drilling oil & gas wells” companies pay a dividend yield of 12.5% and pay out 882.5% of their earnings in the form of a dividend. Oasis Midstream Partners is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Oasis Midstream Partners beats its rivals on 8 of the 12 factors compared.

Oasis Midstream Partners Company Profile

Oasis Midstream Partners LP provides crude oil, natural gas, and water-related midstream services in North America. It offers natural gas gathering, compression, processing, and gas lift services; crude oil gathering, stabilization, blending, and storage services; produced and flowback water gathering and disposal services; freshwater supply and distribution services; and crude oil transportation services from the Wild Basin operating area to Johnson's Corner. OMP GP LLC serves as the general partner of the company. Oasis Midstream Partners LP was founded in 2013 and is based in Houston, Texas. Oasis Midstream Partners LP operates as a subsidiary of OMS Holdings LLC