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 $17.3B against $14.4B — 1.2× the size. Plains All American Pipeline, L.P. trades at the lower P/E: 6.8× against 18.1×. Viper Energy Inc. grew revenue faster over the last twelve months: 92.1% against 13.1%. Viper Energy Inc. has the higher net margin (12.1% vs 4.87%) and the lower return on invested capital (4.01% vs 4.74%). Both pay a dividend; Plains All American Pipeline, L.P. yields more (6.80% vs 6.14%). 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 6.81 18.10 11.68
P/S 0.33 3.39 2.39
P/B 1.42 0.74 1.68
Price to free cash flow 7.11 74.48 8.52
EV/EBITDA 9.46 9.84 9.03
EV/Sales 0.47 4.60 3.43
Earnings yield 14.69% 5.53% 7.78%
Free cash flow yield 14.06% 1.34% 7.11%

Profitability

Metric PAA VNOM Oil & Gas Midstream median
Gross margin 5.55% 100.00% 54.87%
Operating margin 3.14% 36.16% 34.73%
Net margin 4.87% 12.08% 20.12%
Free cash flow margin 4.66% 4.55% 14.43%
Return on equity 21.98% 2.58% 11.73%
Return on assets 9.03% 2.07% 4.43%
Return on invested capital 4.74% 4.01% 6.10%

Growth

Metric PAA VNOM Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 92.09% 14.88%
EPS growth (last fiscal year) 127.40% (112.57%) (7.78%)
Revenue growth, 5-year CAGR 13.70% 40.96% 10.05%
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 0.23 0.77
Current ratio 1.12 5.92 1.19
Net debt to EBITDA 4.58 4.65 3.46

Dividend

Metric PAA VNOM Oil & Gas Midstream median
Dividend yield 6.80% 6.14% 4.94%
Payout ratio 0.46 1.12 0.73

Size

Metric PAA VNOM Oil & Gas Midstream median
Market cap 17.31b 14.36b 3.56b

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