Plains All American Pipeline, L.P. (PAA) vs Western Midstream Partners, LP (WES)

Plains All American Pipeline, L.P. and Western Midstream Partners, LP are both Oil & Gas Midstream companies. Plains All American Pipeline, L.P. and Western Midstream Partners, LP are of similar size ($18.7B and $17.4B). Plains All American Pipeline, L.P. trades at the lower P/E: 6.8× against 14.3×. Western Midstream Partners, LP grew revenue faster over the last twelve months: 18.0% against 13.1%. Western Midstream Partners, LP has the higher net margin (29.0% vs 4.87%) and the higher return on invested capital (8.16% vs 4.74%). Both pay a dividend; Western Midstream Partners, LP yields more (8.96% vs 7.20%). Across the 23 metrics below, Plains All American Pipeline, L.P. leads on 13 and Western Midstream Partners, LP on 10.

Valuation

Metric PAA WES Oil & Gas Midstream median
P/E 6.76 14.29 13.19
P/S 0.33 4.19 2.60
P/B 1.41 4.12 2.08
Price to free cash flow 7.07 15.35 10.14
EV/EBITDA 9.42 10.75 8.11
EV/Sales 0.47 6.26 3.89
Earnings yield 14.78% 7.00% 6.83%
Free cash flow yield 14.15% 6.51% 6.94%

Profitability

Metric PAA WES Oil & Gas Midstream median
Gross margin 5.55% 92.08% 58.81%
Operating margin 3.14% 40.23% 32.14%
Net margin 4.87% 29.00% 21.16%
Free cash flow margin 4.66% 27.30% 10.15%
Return on equity 21.98% 32.48% 11.30%
Return on assets 9.03% 8.82% 5.00%
Return on invested capital 4.74% 8.16% 6.13%

Growth

Metric PAA WES Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 18.00% 15.44%
EPS growth (last fiscal year) 127.40% (25.87%) —
Revenue growth, 5-year CAGR 13.70% 6.75% 8.96%
Net income growth, 5-year CAGR 0.00% 17.48% 0.00%

Health

Metric PAA WES Oil & Gas Midstream median
Debt to equity 0.59 2.06 0.78
Current ratio 1.12 0.91 1.19
Net debt to EBITDA 4.58 3.37 3.42

Dividend

Metric PAA WES Oil & Gas Midstream median
Dividend yield 7.20% 8.96% 7.29%
Payout ratio — — 0.64

Size

Metric PAA WES Oil & Gas Midstream median
Market cap 17.39b 18.74b 3.61b

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