WallStSmart

Energy Transfer LP (ET)vsHess Midstream Partners LP (HESM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Transfer LP generates 5176% more annual revenue ($85.54B vs $1.62B). HESM leads profitability with a 21.8% profit margin vs 5.2%. ET appears more attractively valued with a PEG of 0.64. ET earns a higher WallStSmart Score of 63/100 (C+).

ET

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 5.5Value: 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

ETSignificantly Overvalued (-121.3%)

Margin of Safety

-121.3%

Fair Value

$8.23

Current Price

$19.14

$10.91 premium

UndervaluedFair: $8.23Overvalued
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

ET5 strengths · Avg: 8.2/10
Market CapQuality
$66.09B9/10

Large-cap with strong market position

PEG RatioValuation
0.648/10

Growing faster than its price suggests

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
29.6%8/10

Revenue surging 29.6% year-over-year

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

ET3 concerns · Avg: 2.3/10
Profit MarginProfitability
5.2%3/10

5.2% margin — thin

EPS GrowthGrowth
-15.2%2/10

Earnings declined 15.2%

Free Cash FlowQuality
$-225.00M2/10

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 : ET

The strongest argument for ET centers on Market Cap, PEG Ratio, P/E Ratio. Revenue growth of 29.6% demonstrates continued momentum. PEG of 0.64 suggests the stock is reasonably priced for its growth.

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 : ET

The primary concerns for ET are Profit Margin, EPS Growth, Free Cash Flow.

Bear Case : HESM

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

Key Dynamics to Monitor

ET profiles as a growth stock while HESM is a value play — different risk/reward profiles.

ET carries more volatility with a beta of 0.65 — expect wider price swings.

ET is growing revenue faster at 29.6% — sustainability is the question.

HESM generates stronger free cash flow (36M), providing more financial flexibility.

Bottom Line

ET scores higher overall (63/100 vs 62/100) and 29.6% revenue growth. HESM offers better value entry with a 40.9% 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.

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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