Better Buy: Enbridge vs. Magellan Midstream Partners
The energy sector has been hit by a triple whammy, and the pain is being felt throughout the broader industry. Even historically more conservative corners of the space, like the midstream niche, are getting whacked. But for intrepid investors willing to act while there's blood in the streets, now could be a good time to find bargains. Enbridge (NYSE: ENB) and Magellan Midstream Partners (NYSE: MMP) both offer high yields and fee-driven businesses. Let's take a look to see which of these two midstream names might be right for you.
Both Enbridge and Magellan operate in the midstream space within the broader energy sector. Generally speaking, they both help move oil and natural gas, getting paid for the use of their pipelines and other assets. The price of the products going through their systems is not the primary driver of their financial results. So they are both a more conservative way to get exposure to the energy space than, say, an upstream-focused name that drills for these commodities.
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Source Fool.com
