Pembina Pipeline (PBA) vs. Its Peers Head-To-Head Survey

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

Institutional & 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 company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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 competitors have a beta of -3.76, indicating that their average stock price is 476% less volatile than the S&P 500.

Profitability

This table compares Pembina Pipeline and its competitors’ 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 & Earnings

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Pembina Pipeline and its competitors, as provided by MarketBeat.

	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 target price 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 competitors.

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 increased its dividend for 4 consecutive years. Pembina Pipeline lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Pembina Pipeline competitors 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.