COMPARE · Reviewed July 14, 2026
HESM vs VET
Verdict: Side-by-side breakdown using the Bull Rankings model. HESM scored 65.1, VET scored 64.6 — HESM leads.
Compare another set
HESM
Hess Midstream LP
65.1
$39.85 · $8.2B
Score gap
0.5
HESM leads
VET
Vermilion Energy Inc.
64.6
$9.82 · $1.5B
The model, pillar by pillar (0–100 each)
HESM
stronger →← stronger
VET
82
Qualityreturns · margins · balance sheet
63
50
Growthrevenue & earnings expansion
50
68
Valuevaluation vs sector peers
100
HESM and VET split the three pillars evenly.
Fundamentals, head-to-head
HESM
VET
$796mC+
FCF
$988mC+
+7.1%B
Rev
+14.1%B+
—
D/E
0.64B
13.8xB+
P/E
—
1.64C+
PEG
—
—
P/S
1.2xB+
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
HESM
VET
63% below
Price vs fair valuelower is cheaper
94% below
~-16%/yr
Growth the price implies10-yr FCF · lower = less priced in
decline
+148%
1-yr DCF upside
+1073%
+173%
5-yr DCF upside
+1443%
+214%
10-yr DCF upside
+2205%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
HESM
Why this score
- Raising its dividend
- Diluting shareholders
- Cyclical growth
- Short track record
VET
Why this score
- Raising its dividend
- Cyclical growth
- Short track record
- Foreign reporter (CAD)
The companies
HESMHess Midstream LP
Why now
Oil & Gas Midstream · market cap $8.2b. 10% off the 52-week high of $44.14. 6 sell-side analysts rate this an Underperform with a mean 1-yr target of $36.83 (implying -8% upside).
Moat
Net margin 23% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Dividend payout 103% of earnings on a 7.7% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Hedge-book exposure — many commodity producers hedge forward production; if the hedge book is concentrated at prices well below spot, the upside the market expects is already locked away.
VETVermilion Energy Inc.
Why now
Oil & Gas E&P · market cap $1.5b. Down 34% from 52-week high of $14.82 — deep drawdown territory. Revenue growing +14%, comfortably above the S&P median.
Moat
Turnaround / out-of-favor name — GAAP-unprofitable for now, so the durability case is forward-looking: it rests on a recovery (margin normalization, a cyclical upturn or restructuring) or an un-monetized asset (IP / network effects / first-mover position) rather than on current reported results.
Risk
Currently unprofitable (margin -37.0%) — path to GAAP profitability is the core thesis risk. Down 34% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. ROE -29% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.