Head-To-Head Review: Pembina Pipeline (PBA) and The Competition

Pembina Pipeline (NYSE:PBA) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its rivals? We will compare Pembina Pipeline to related businesses based on the strength of its earnings, analyst recommendations, profitability, risk, institutional ownership, valuation and dividends.

Profitability

This table compares Pembina Pipeline and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pembina Pipeline	24.77%	12.62%	5.33%
Pembina Pipeline Competitors	-456.96%	19.46%	6.50%

Valuation and Earnings

This table compares Pembina Pipeline and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pembina Pipeline	$5.57 billion	$1.21 billion	20.17
Pembina Pipeline Competitors	$11.10 billion	$5.51 billion	-0.80

Pembina Pipeline’s rivals have higher revenue and earnings than Pembina Pipeline. Pembina Pipeline is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

55.4% of Pembina Pipeline shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.1% of Pembina Pipeline shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Pembina Pipeline has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Pembina Pipeline’s rivals have a beta of -3.76, indicating that their average stock price is 476% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Pembina Pipeline and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pembina Pipeline	0	5	5	0	2.50
Pembina Pipeline Competitors	5981	26992	40848	2423	2.52

Pembina Pipeline currently has a consensus price target of $64.00, indicating a potential upside of 32.73%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.96%. Given Pembina Pipeline’s higher possible upside, equities research analysts plainly believe Pembina Pipeline is more favorable than its rivals.

Dividends

Pembina Pipeline pays an annual dividend of $2.12 per share and has a dividend yield of 4.4%. Pembina Pipeline pays out 88.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -133.5% of their earnings in the form of a dividend. Pembina Pipeline has raised its dividend for 4 consecutive years. Pembina Pipeline lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Pembina Pipeline rivals beat Pembina Pipeline on 10 of the 15 factors compared.

About Pembina Pipeline

Pembina Pipeline Corporation provides energy transportation and midstream services. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 2.9 millions of barrels of oil equivalent per day, the ground storage capacity of 10 millions of barrels, and rail terminalling capacity of approximately 105 thousands of barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousands of barrels per day of NGL fractionation capacity, 21 millions of barrels of cavern storage capacity, and associated pipeline, and rail terminalling facilities and a liquefied propane export facility. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada.