WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Enterprise Products Partners LP generates 3144% more annual revenue ($52.60B vs $1.62B). HESM leads profitability with a 21.8% profit margin vs 11.1%. HESM appears more attractively valued with a PEG of 1.57. HESM earns a higher WallStSmart Score of 62/100 (C+).

EPD

Buy

50

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 7.3Quality: 5.0

HESM

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 10.0Quality: 4.3
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EPDSignificantly Overvalued (-40.0%)

Margin of Safety

-40.0%

Fair Value

$25.32

Current Price

$38.99

$13.67 premium

UndervaluedFair: $25.32Overvalued
HESMUndervalued (+40.9%)

Margin of Safety

+40.9%

Fair Value

$61.55

Current Price

$39.75

$21.80 discount

UndervaluedFair: $61.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EPD3 strengths · Avg: 8.3/10
Market CapQuality
$81.20B9/10

Large-cap with strong market position

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

HESM3 strengths · Avg: 9.0/10
Operating MarginProfitability
62.3%10/10

Strong operational efficiency at 62.3%

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Areas to Watch

EPD4 concerns · Avg: 3.0/10
PEG RatioValuation
2.164/10

Expensive relative to growth rate

EPS GrowthGrowth
1.7%4/10

1.7% earnings growth

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

HESM4 concerns · Avg: 3.8/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Return on EquityProfitability
1.5%3/10

ROE of 1.5% — below average capital efficiency

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 Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 21.8% and operating margin at 62.3%.

Bear Case : EPD

The primary concerns for EPD are PEG Ratio, EPS Growth, 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 0.57 — expect wider price swings.

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

Monitor OIL & GAS MIDSTREAM industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HESM scores higher overall (62/100 vs 50/100), backed by strong 21.8% margins. 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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