Better Buy: Enterprise Products Partners L.P. vs. Magellan Midstream Partners, L.P.

Enterprise Products Partners (NYSE: EPD) and Magellan Midstream Partners (NYSE: MMP) are arguably the two best-managed master limited partnerships in the industry. Instead of distributing all their cash flow to investors and taking on excessive debt to fund growth like many rivals, these companies have taken a more conservative approach to both investor returns and expansion. That has enabled both to maintain healthy financial profiles so that they can continue to increase their payouts to investors even as many rivals have had to slash theirs and redirect that cash flow to improving their financial situation.

Because of their financial strength, investors face a tough choice when deciding between the two. That said, when factoring in their current yield, valuation, and growth prospects, Enterprise once again stands out as the better buy.

As I previously mentioned, Enterprise and Magellan have two of the strongest financial profiles among MLPs. Here's how these two companies stack up against each other as well as versus rival MLPs:

Source: Fool.com