Plains All American Pipeline, L.P. (PAA) vs Viper Energy Inc. (VNOM)

Plains All American Pipeline, L.P. and Viper Energy Inc. are both Oil & Gas Midstream companies. Plains All American Pipeline, L.P. is the larger, with a market value of $17.4B against $15.0B — 1.2× the size. Plains All American Pipeline, L.P. trades at the lower P/E: 6.8× against 292×. Viper Energy Inc. grew revenue faster over the last twelve months: 107.8% against 13.1%. Plains All American Pipeline, L.P. has the higher net margin (4.87% vs 2.89%) and the higher return on invested capital (4.74% vs 1.32%). Both pay a dividend; Plains All American Pipeline, L.P. yields more (7.20% vs 6.49%). Across the 22 metrics below, Plains All American Pipeline, L.P. leads on 13 and Viper Energy Inc. on 9.

Valuation

Metric PAA VNOM Oil & Gas Midstream median
P/E 6.76 292.36 13.19
P/S 0.33 3.89 2.60
P/B 1.41 0.77 2.08
Price to free cash flow 7.07 10.38 10.14
EV/EBITDA 9.42 9.28 8.11
EV/Sales 0.47 4.86 3.89
Earnings yield 14.78% 0.34% 6.83%
Free cash flow yield 14.15% 9.63% 6.94%

Profitability

Metric PAA VNOM Oil & Gas Midstream median
Gross margin 5.55% 100.00% 58.81%
Operating margin 3.14% 12.30% 32.14%
Net margin 4.87% 2.89% 21.16%
Free cash flow margin 4.66% 37.43% 10.15%
Return on equity 21.98% 0.62% 11.30%
Return on assets 9.03% 0.54% 5.00%
Return on invested capital 4.74% 1.32% 6.13%

Growth

Metric PAA VNOM Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 107.84% 15.44%
EPS growth (last fiscal year) 127.40% (112.57%) —
Revenue growth, 5-year CAGR 13.70% 40.96% 8.96%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PAA VNOM Oil & Gas Midstream median
Debt to equity 0.59 0.16 0.78
Current ratio 1.12 6.37 1.19
Net debt to EBITDA 4.58 4.65 3.42

Dividend

Metric PAA VNOM Oil & Gas Midstream median
Dividend yield 7.20% 6.49% 7.29%
Payout ratio — — 0.64

Size

Metric PAA VNOM Oil & Gas Midstream median
Market cap 17.39b 14.96b 3.61b

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