Energy Transfer LP (ET)vsHess Midstream Partners LP (HESM)
ET
Energy Transfer LP
$20.50
+0.44%
ENERGY · Cap: $74.20B
HESM
Hess Midstream Partners LP
$38.78
-1.00%
ENERGY · Cap: $8.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Energy Transfer LP generates 6552% more annual revenue ($107.38B vs $1.61B). HESM leads profitability with a 23.2% profit margin vs 4.9%. ET appears more attractively valued with a PEG of 0.67. ET earns a higher WallStSmart Score of 72/100 (B).
ET
Strong Buy72
out of 100
Grade: B
HESM
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+86.4%
Fair Value
$156.76
Current Price
$20.50
$136.26 discount
Margin of Safety
-15.4%
Fair Value
$31.55
Current Price
$38.78
$7.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 78.4% year-over-year
Earnings expanding 85.3% YoY
Large-cap with strong market position
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 71 in profit
Strong operational efficiency at 63.5%
Keeps 23 of every $100 in revenue as profit
Attractively priced relative to earnings
Areas to Watch
4.9% margin — thin
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Trading at 9.7x book value
1.4% earnings growth
Revenue declined 3.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : ET
The strongest argument for ET centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 78.4% demonstrates continued momentum. PEG of 0.67 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 : ET
The primary concerns for ET are Profit Margin, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.99 is elevated, increasing financial risk. Thin 4.9% margins leave little buffer for downturns.
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
ET profiles as a hypergrowth stock while HESM is a declining play — different risk/reward profiles.
ET carries more volatility with a beta of 0.57 — expect wider price swings.
ET is growing revenue faster at 78.4% — sustainability is the question.
ET generates stronger free cash flow (2.7B), providing more financial flexibility.
Bottom Line
ET scores higher overall (72/100 vs 58/100) and 78.4% 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.
Energy Transfer LP
ENERGY · OIL & GAS MIDSTREAM · USA
Energy Transfer LP offers energy related services. The company is headquartered in Dallas, 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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