Summit Midstream (SMC) and Its Rivals Critical Analysis

Institutional & Insider Ownership

43.0% of Summit Midstream shares are held by institutional investors. Comparatively, 51.7% of shares of all “Natural gas transmission” companies are held by institutional investors. 5.3% of Summit Midstream shares are held by company insiders. Comparatively, 5.6% of shares of all “Natural gas transmission” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Summit Midstream and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Midstream	-23.01%	0.71%	0.22%
Summit Midstream Competitors	18.02%	13.32%	4.78%

Risk and Volatility

Summit Midstream has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, Summit Midstream’s competitors have a beta of 1.75, indicating that their average stock price is 75% more volatile than the S&P 500.

Valuation & Earnings

This table compares Summit Midstream and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Summit Midstream	$449.92 million	-$38.95 million	-2.71
Summit Midstream Competitors	$25.14 billion	$808.99 million	50.79

Summit Midstream’s competitors have higher revenue and earnings than Summit Midstream. Summit Midstream is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Summit Midstream competitors beat Summit Midstream on 8 of the 9 factors compared.

Summit Midstream Company Profile

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.