WallStSmart

Hess Midstream Partners LP (HESM)vsShell PLC ADR (SHEL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Shell PLC ADR generates 18274% more annual revenue ($296.60B vs $1.61B). HESM leads profitability with a 23.2% profit margin vs 8.8%. HESM appears more attractively valued with a PEG of 1.57. SHEL earns a higher WallStSmart Score of 70/100 (B).

HESM

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 6.0Quality: 3.8
Piotroski: 5/9

SHEL

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 2.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HESMOvervalued (-14.8%)

Margin of Safety

-14.8%

Fair Value

$31.72

Current Price

$29.96

$1.76 premium

UndervaluedFair: $31.72Overvalued
SHELSignificantly Overvalued (-77.1%)

Margin of Safety

-77.1%

Fair Value

$59.39

Current Price

$99.09

$39.70 premium

UndervaluedFair: $59.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HESM4 strengths · Avg: 9.8/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

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

SHEL6 strengths · Avg: 9.7/10
Market CapQuality
$297.56B10/10

Mega-cap, among the largest globally

P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Revenue GrowthGrowth
44.7%10/10

Revenue surging 44.7% year-over-year

EPS GrowthGrowth
220.0%10/10

Earnings expanding 220.0% YoY

Free Cash FlowQuality
$17.40B10/10

Generating 17.4B in free cash flow

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

HESM4 concerns · Avg: 2.8/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

EPS GrowthGrowth
1.4%4/10

1.4% earnings growth

Revenue GrowthGrowth
-3.7%2/10

Revenue declined 3.7%

Debt/EquityHealth
7.151/10

Elevated debt levels

SHEL2 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HESM

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

Bull Case : SHEL

The strongest argument for SHEL centers on Market Cap, P/E Ratio, Revenue Growth. Revenue growth of 44.7% demonstrates continued momentum.

Bear Case : HESM

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

Bear Case : SHEL

The primary concerns for SHEL are PEG Ratio, Piotroski F-Score.

Key Dynamics to Monitor

HESM profiles as a declining stock while SHEL is a hypergrowth play — different risk/reward profiles.

HESM carries more volatility with a beta of 0.56 — expect wider price swings.

SHEL is growing revenue faster at 44.7% — sustainability is the question.

SHEL generates stronger free cash flow (17.4B), providing more financial flexibility.

Bottom Line

SHEL scores higher overall (70/100 vs 58/100) and 44.7% 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.

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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Shell PLC ADR

ENERGY · OIL & GAS INTEGRATED · USA

Shell plc is a global petrochemical and energy company. The company is headquartered in The Hague, the Netherlands.

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