Critical Review: Rattler Midstream (RTLR) versus The Competition

Rattler Midstream (NASDAQ: RTLR) is one of 35 publicly-traded companies in the “Natural gas transmission” industry, but how does it compare to its peers? We will compare Rattler Midstream to related businesses based on the strength of its dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Rattler Midstream and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rattler Midstream N/A N/A N/A
Rattler Midstream Competitors 9.43% 11.03% 4.32%

Insider & Institutional Ownership

28.7% of Rattler Midstream shares are held by institutional investors. Comparatively, 50.2% of shares of all “Natural gas transmission” companies are held by institutional investors. 8.2% of shares of all “Natural gas transmission” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Rattler Midstream and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rattler Midstream 0 6 10 0 2.63
Rattler Midstream Competitors 560 2091 2526 99 2.41

Rattler Midstream currently has a consensus price target of $18.93, suggesting a potential upside of 403.42%. As a group, “Natural gas transmission” companies have a potential upside of 126.32%. Given Rattler Midstream’s stronger consensus rating and higher possible upside, analysts clearly believe Rattler Midstream is more favorable than its peers.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Rattler Midstream $447.67 million $94.80 million 5.88
Rattler Midstream Competitors $6.63 billion $652.55 million 15.45

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

Dividends

Rattler Midstream pays an annual dividend of $1.16 per share and has a dividend yield of 30.9%. Rattler Midstream pays out 181.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Natural gas transmission” companies pay a dividend yield of 14.1% and pay out 124.9% of their earnings in the form of a dividend.

Summary

Rattler Midstream peers beat Rattler Midstream on 10 of the 14 factors compared.

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