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 $17.7B against $15.7B — 1.1× the size. Plains All American Pipeline, L.P. trades at the lower P/E: 7.0× against 322×. 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 (8.12% vs 5.44%). Across the 22 metrics below, Plains All American Pipeline, L.P. leads on 14 and Viper Energy Inc. on 8.

Valuation

Metric PAA VNOM Oil & Gas Midstream median
P/E 6.99 321.64 12.77
P/S 0.34 4.27 2.36
P/B 1.45 0.85 2.09
Price to free cash flow 7.31 11.42 9.71
EV/EBITDA 9.64 10.02 8.30
EV/Sales 0.48 5.24 3.88
Earnings yield 14.30% 0.31% 7.15%
Free cash flow yield 13.68% 8.76% 6.86%

Profitability

Metric PAA VNOM Oil & Gas Midstream median
Gross margin 5.55% 100.00% 56.58%
Operating margin 3.14% 12.30% 34.18%
Net margin 4.87% 2.89% 22.50%
Free cash flow margin 4.66% 37.43% 13.70%
Return on equity 21.98% 0.62% 14.65%
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% 15.60%
EPS growth (last fiscal year) 127.40% (112.57%) (7.86%)
Revenue growth, 5-year CAGR 13.70% 40.96% 9.59%
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 8.12% 5.44% 4.54%
Payout ratio 0.57 18.85 0.76

Size

Metric PAA VNOM Oil & Gas Midstream median
Market cap 17.74b 15.71b 3.73b

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