Better Buy: Kinder Morgan vs. Enterprise Products Partners

Kinder Morgan (NYSE: KMI) and Enterprise Products Partners (NYSE: EPD) are giants in the deeply out-of-favor energy sector. That could present an opportunity for investors who believe that oil and natural gas will remain important energy sources for years to come. But is one of these two high-yield stocks a better buy than the other today?

Kinder Morgan has a market cap of $28 billion. Master limited partnership Enterprise Products Partners has a market cap of roughly $34 billion. While Enterprise is a bit bigger by this measure, both are very large players in the North American oil and natural gas midstream sector. Indeed, they each have a material and diverse collection of assets that would be difficult, if not impossible, to replace.

Although not interchangeable investments, both Kinder Morgan and Enterprise provide investors fairly broad exposure to the midstream niche of the North American energy sector. From this perspective the two are very similar.

Source Fool.com