WallStSmart

Enterprise Products Partners LP (EPD)vsHess Midstream Partners LP (HESM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Enterprise Products Partners LP generates 3522% more annual revenue ($58.47B vs $1.61B). HESM leads profitability with a 23.2% profit margin vs 10.8%. EPD appears more attractively valued with a PEG of 1.39. EPD earns a higher WallStSmart Score of 72/100 (B).

EPD

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 6.5Value: 7.3Quality: 4.3
Piotroski: 4/9

HESM

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 4.7Quality: 3.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EPDUndervalued (+28.7%)

Margin of Safety

+28.7%

Fair Value

$54.56

Current Price

$38.01

$16.55 discount

UndervaluedFair: $54.56Overvalued
HESMSignificantly Overvalued (-15.4%)

Margin of Safety

-15.4%

Fair Value

$31.55

Current Price

$38.78

$7.23 premium

UndervaluedFair: $31.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EPD6 strengths · Avg: 8.7/10
Revenue GrowthGrowth
60.8%10/10

Revenue surging 60.8% year-over-year

Market CapQuality
$84.93B9/10

Large-cap with strong market position

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

EPS GrowthGrowth
28.5%8/10

Earnings expanding 28.5% YoY

HESM4 strengths · Avg: 9.3/10
Return on EquityProfitability
71.2%10/10

Every $100 of equity generates 71 in profit

Operating MarginProfitability
63.5%10/10

Strong operational efficiency at 63.5%

Profit MarginProfitability
23.2%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

Areas to Watch

EPD1 concerns · Avg: 3.0/10
Debt/EquityHealth
1.123/10

Elevated debt levels

HESM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
9.7x4/10

Trading at 9.7x book value

EPS GrowthGrowth
1.4%4/10

1.4% earnings growth

Revenue GrowthGrowth
-3.7%2/10

Revenue declined 3.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : EPD

The strongest argument for EPD centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 60.8% demonstrates continued momentum. PEG of 1.39 suggests the stock is reasonably priced for its growth.

Bull Case : HESM

The strongest argument for HESM centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 23.2% and operating margin at 63.5%.

Bear Case : EPD

The primary concerns for EPD are Debt/Equity.

Bear Case : HESM

The primary concerns for HESM are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 7.15 is elevated, increasing financial risk.

Key Dynamics to Monitor

EPD profiles as a growth stock while HESM is a declining play — different risk/reward profiles.

HESM carries more volatility with a beta of 0.50 — expect wider price swings.

EPD is growing revenue faster at 60.8% — sustainability is the question.

EPD generates stronger free cash flow (2.0B), providing more financial flexibility.

Bottom Line

EPD scores higher overall (72/100 vs 58/100) and 60.8% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Enterprise Products Partners LP

ENERGY · OIL & GAS MIDSTREAM · USA

Enterprise Products Partners LP provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGL), crude oil, petrochemicals, and refined products. The company is headquartered in Houston, Texas.

Hess Midstream Partners LP

ENERGY · OIL & GAS MIDSTREAM · USA

Hess Midstream LP owns, develops, operates and acquires midstream assets. The company is headquartered in Houston, Texas.

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