Plains All American Pipeline, L.P. (PAA) vs Venture Global, Inc. (VG)

Plains All American Pipeline, L.P. and Venture Global, Inc. are both Oil & Gas Midstream companies. Venture Global, Inc. is the larger, with a market value of $31.3B against $17.7B — 1.8× the size. Plains All American Pipeline, L.P. trades at the lower P/E: 7.0× against 9.4×. Venture Global, Inc. grew revenue faster over the last twelve months: 100.7% against 13.1%. Venture Global, Inc. has the higher net margin (19.7% vs 4.87%) and the higher return on invested capital (7.86% vs 4.74%). Across the 19 metrics below, Plains All American Pipeline, L.P. leads on 11 and Venture Global, Inc. on 8.

Valuation

Metric PAA VG Oil & Gas Midstream median
P/E 6.99 9.35 12.77
P/S 0.34 1.87 2.36
P/B 1.45 2.62 2.09
Price to free cash flow 7.31 n/m 9.71
EV/EBITDA 9.64 9.57 8.30
EV/Sales 0.48 4.15 3.88
Earnings yield 14.30% 10.69% 7.15%
Free cash flow yield 13.68% (22.08%) 6.86%

Profitability

Metric PAA VG Oil & Gas Midstream median
Gross margin 5.55% 53.48% 56.58%
Operating margin 3.14% 37.62% 34.18%
Net margin 4.87% 19.65% 22.50%
Free cash flow margin 4.66% (41.24%) 13.70%
Return on equity 21.98% 31.90% 14.65%
Return on assets 9.03% 6.17% 5.00%
Return on invested capital 4.74% 7.86% 6.13%

Growth

Metric PAA VG Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 100.72% 15.60%
EPS growth (last fiscal year) 127.40% 50.88% (7.86%)
Revenue growth, 5-year CAGR 13.70% — 9.59%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric PAA VG Oil & Gas Midstream median
Debt to equity 0.59 3.46 0.78
Current ratio 1.12 1.19 1.19
Net debt to EBITDA 4.58 5.19 3.42

Dividend

Metric PAA VG Oil & Gas Midstream median
Dividend yield 8.12% — 4.54%
Payout ratio 0.57 — 0.76

Size

Metric PAA VG Oil & Gas Midstream median
Market cap 17.74b 31.25b 3.73b

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