Suncor Energy (NYSE:SU) and Pembina Pipeline (NYSE:PBA) Head-To-Head Analysis

Suncor Energy (NYSE:SU) and Pembina Pipeline (NYSE:PBA) are both large-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Risk & Volatility

Suncor Energy has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Pembina Pipeline has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

67.4% of Suncor Energy shares are held by institutional investors. Comparatively, 55.4% of Pembina Pipeline shares are held by institutional investors. 1.0% of Suncor Energy shares are held by insiders. Comparatively, 0.1% of Pembina Pipeline shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Suncor Energy and Pembina Pipeline”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suncor Energy	$35.29 billion	2.29	$4.24 billion	$5.43	12.71
Pembina Pipeline	$5.57 billion	5.14	$1.21 billion	$2.04	24.14

Suncor Energy has higher revenue and earnings than Pembina Pipeline. Suncor Energy is trading at a lower price-to-earnings ratio than Pembina Pipeline, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Suncor Energy and Pembina Pipeline, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suncor Energy	0	3	7	1	2.82
Pembina Pipeline	0	4	5	0	2.56

Suncor Energy currently has a consensus target price of $80.25, suggesting a potential upside of 16.28%. Pembina Pipeline has a consensus target price of $64.00, suggesting a potential upside of 29.98%. Given Pembina Pipeline’s higher probable upside, analysts clearly believe Pembina Pipeline is more favorable than Suncor Energy.

Profitability

This table compares Suncor Energy and Pembina Pipeline’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suncor Energy	15.62%	20.05%	10.06%
Pembina Pipeline	22.41%	11.41%	4.82%

Dividends

Suncor Energy pays an annual dividend of $1.73 per share and has a dividend yield of 2.5%. Pembina Pipeline pays an annual dividend of $2.13 per share and has a dividend yield of 4.3%. Suncor Energy pays out 31.9% of its earnings in the form of a dividend. Pembina Pipeline pays out 104.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy has raised its dividend for 4 consecutive years and Pembina Pipeline has raised its dividend for 4 consecutive years.

Summary

Suncor Energy beats Pembina Pipeline on 11 of the 17 factors compared between the two stocks.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.

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.