Critical Contrast: Venture Global (NYSE:VG) & Summit Midstream Partners (NYSE:SMC)

Summit Midstream Partners (NYSE:SMC – Get Free Report) and Venture Global (NYSE:VG – Get Free Report) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares Summit Midstream Partners and Venture Global’s net margins, return on equity and return on assets.

Analyst Ratings

This is a summary of current ratings for Summit Midstream Partners and Venture Global, as provided by MarketBeat.com.

Summit Midstream Partners currently has a consensus price target of $43.00, indicating a potential upside of 35.18%. Venture Global has a consensus price target of $16.13, indicating a potential upside of 24.92%. Given Summit Midstream Partners’ higher probable upside, equities research analysts plainly believe Summit Midstream Partners is more favorable than Venture Global.

Valuation & Earnings

This table compares Summit Midstream Partners and Venture Global”s top-line revenue, earnings per share and valuation.

Venture Global has higher revenue and earnings than Summit Midstream Partners. Summit Midstream Partners is trading at a lower price-to-earnings ratio than Venture Global, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

43.0% of Summit Midstream Partners shares are owned by institutional investors. 43.0% of Summit Midstream Partners shares are owned by company insiders. Comparatively, 84.2% of Venture Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Summit Midstream Partners has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Venture Global has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.

Summary

Venture Global beats Summit Midstream Partners on 12 of the 15 factors compared between the two stocks.

About Summit Midstream Partners

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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.

About Venture Global

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Venture Global has fundamentally reshaped the development and construction of liquefied natural gas production, establishing us as a rapidly growing company delivering critical LNG to the world. Our innovative and disruptive approach, which is both scalable and repeatable, allows us to bring LNG to a global market years faster and at a lower cost. We believe supplying this clean, affordable fuel promotes global energy security and is essential to meeting growing global demand. Natural gas is one of the most important resources worldwide and is required to generate reliable electricity that underpins economic development and drives industry. Once natural gas is supercooled to -260°F, it converts to liquid form and reduces to 1/600th of its original volume, enabling large quantities of natural gas to be loaded and shipped by LNG tankers. The resulting LNG can be transported to international markets that lack domestic supply, displacing more carbon intensive sources of energy such as coal, diesel, and heavy fuel oil, and serving as an integral part of a cleaner energy future. We believe our business model has demonstrated that in a competitive commodity market, lower cost and overall faster delivery wins market share. Our approach capitalizes on both of these advantages, supporting significant additional growth opportunities. Our Projects We are commissioning, constructing, and developing five natural gas liquefaction and export projects near the Gulf of Mexico in Louisiana, utilizing our unique “design one, build many” approach. Each project is designed or is being developed to include an LNG facility and associated pipeline systems that interconnect with several interstate and intrastate pipelines to enable the delivery of natural gas into the LNG facility. Our five current projects are being designed to deliver a total expected peak production capacity of 143.8 mtpa, which consists of an aggregate of 104.4 mtpa expected nameplate capacity and an aggregate of 39.4 mtpa of expected excess capacity. These amounts do not account for any potential bolt-on expansion liquefaction capacity. The expected nameplate capacity of our facilities measures the minimum operating performance thresholds guaranteed by the equipment providers, and the expected excess capacity represents the additional LNG that we aim to produce above such guaranteed amounts. Although COD has not yet occurred under the post-COD SPAs for any of our projects, we have been generating proceeds from the sale of commissioning cargos at the Calcasieu Project since the first quarter of 2022, and expect to do so at each of our other projects during commissioning prior to achieving COD for the relevant project or phase of a project. Our direct subsidiary, VGLNG, which owns all of our subsidiaries, was originally established in 2013 by our founders. As part of certain corporate reorganization transactions, or Reorganization Transactions, Venture Global, Inc. was formed in 2023 and became the 100% owner of VGLNG. We are a holding company and have no direct operations. All of our business operations are conducted through our subsidiaries, including VGLNG. Our principal asset is the equity interest in VGLNG, which, together with its subsidiaries, owns substantially all of our operating assets. As a result, we are dependent on the ability of our subsidiaries to generate revenues and to make loans, pay dividends and make other payments to generate the funds necessary to meet our financial obligations and to pay dividends to stockholders, if any. Our principal executive offices are located at 1001 19th Street North, Suite 1500, Arlington, VA.