Better Stock Today Challenge: Kinder Morgan Partners vs. Melco Crown
In the spirit of World Cup competition, we're holding our own tournament in search of the Better Stock Today. We're pitting 32 companies against each other, and you, the reader, will determine the winner.
Today it's the Quarter-Final stage, and Kinder Morgan Partners takes on Melco Crown in our search for the better stock.
Joel South, energy analyst at The Motley Fool, thinks Kinder Morgan Partners is the better investment because the firm is the premier midstream MLP in the world. Kinder Morgan Partners offer a substantial 7.1% distribution yield, but more importantly, the large pipeline operator continues to grow its payments by strict capital discipline and structuring its contracts so 93% of all revenue is absent commodity risk. With $641 billion expected to be spent in the North American midstream market in the next 20 years, Kinder Morgan Partners could outperform the broad market year in and year out.
Consumer goods analyst Sean O'Reilly makes the case for Melco Crown Entertainment in this matchup. Sean believes that while growth fears in the company's main market of Macau have led to a pullback in the stock, the upcoming opening of its City of Dreams Manila resort later this year, coupled with possible Japanese gaming legalization, mean Melco Crown should win this round of the competition.
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Vote here to determine the winner of this match and sound off in the comments box below. Check back to Fool.com to see who advances in the tournament.
The article Better Stock Today Challenge: Kinder Morgan Partners vs. Melco Crown originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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