Better Buy: Energy Transfer or Enterprise Products Partners?
Strong crude oil prices this year have attracted investors back to energy stocks. Although oil prices have corrected a bit over the last couple of months, they are still well above $80 per barrel. Energy companies may enjoy the benefits of high oil prices in the coming months as well.
Energy Transfer (NYSE: ET) and Enterprise Products Partners (NYSE: EPD) are both top companies in the midstream energy segment. Let's look at which of the two looks like a better buy right now.
Both Energy Transfer and Enterprise Products Partners operate in the midstream segment of the energy value chain. Yet, the two differ significantly in terms of their growth approaches. While Enterprise Products Partners maintains a very conservative stance, Energy Transfer adapts an aggressive growth strategy. This gets reflected in the difference in the use of debt for growth by the two companies.
Source Fool.com
