WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Enterprise Products Partners LP generates 3065% more annual revenue ($51.56B vs $1.63B). HESM leads profitability with a 22.6% profit margin vs 11.5%. HESM appears more attractively valued with a PEG of 1.57. HESM earns a higher WallStSmart Score of 60/100 (C+).

EPD

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 7.3Quality: 5.0

HESM

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 9.0Value: 6.0Quality: 4.3
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EPDUndervalued (+37.5%)

Margin of Safety

+37.5%

Fair Value

$56.69

Current Price

$37.19

$19.50 discount

UndervaluedFair: $56.69Overvalued
HESMUndervalued (+6.7%)

Margin of Safety

+6.7%

Fair Value

$39.02

Current Price

$38.17

$0.85 discount

UndervaluedFair: $39.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EPD3 strengths · Avg: 8.3/10
Market CapQuality
$81.56B9/10

Large-cap with strong market position

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

HESM4 strengths · Avg: 9.3/10
Return on EquityProfitability
151.6%10/10

Every $100 of equity generates 152 in profit

Operating MarginProfitability
61.0%10/10

Strong operational efficiency at 61.0%

Profit MarginProfitability
22.6%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

Areas to Watch

EPD2 concerns · Avg: 3.0/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Revenue GrowthGrowth
-6.7%2/10

Revenue declined 6.7%

HESM4 concerns · Avg: 4.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

EPS GrowthGrowth
4.8%4/10

4.8% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : EPD

The strongest argument for EPD centers on Market Cap, P/E Ratio, Price/Book.

Bull Case : HESM

The strongest argument for HESM centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.6% and operating margin at 61.0%.

Bear Case : EPD

The primary concerns for EPD are PEG Ratio, Revenue Growth.

Bear Case : HESM

The primary concerns for HESM are PEG Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

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

HESM carries more volatility with a beta of 0.52 — expect wider price swings.

HESM is growing revenue faster at 2.1% — sustainability is the question.

EPD generates stronger free cash flow (486M), providing more financial flexibility.

Bottom Line

HESM scores higher overall (60/100 vs 52/100), backed by strong 22.6% margins. EPD offers better value entry with a 37.5% margin of safety. Both earn "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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