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 ($17.3B and $16.5B). Plains All American Pipeline, L.P. trades at the lower P/E: 6.8× against 12.9×. Western Midstream Partners, LP grew revenue faster over the last twelve months: 22.3% against 13.1%. Plains All American Pipeline, L.P. has the higher net margin (4.87% vs 0.00%) and the lower return on invested capital (4.74% vs 8.19%). Both pay a dividend; Western Midstream Partners, LP yields more (9.25% vs 6.80%). Across the 23 metrics below, Plains All American Pipeline, L.P. leads on 15 and Western Midstream Partners, LP on 8.

Valuation

Metric PAA WES Oil & Gas Midstream median
P/E 6.81 12.86 11.68
P/S 0.33 3.61 2.39
P/B 1.42 3.80 1.68
Price to free cash flow 7.11 14.07 8.52
EV/EBITDA 9.46 10.16 9.03
EV/Sales 0.47 5.60 3.43
Earnings yield 14.69% 7.78% 7.78%
Free cash flow yield 14.06% 7.11% 7.11%

Profitability

Metric PAA WES Oil & Gas Midstream median
Gross margin 5.55% 90.96% 54.87%
Operating margin 3.14% 38.54% 34.73%
Net margin 4.87% 0.00% 20.12%
Free cash flow margin 4.66% 45.63% 14.43%
Return on equity 21.98% 0.00% 11.73%
Return on assets 9.03% 0.00% 4.43%
Return on invested capital 4.74% 8.19% 6.10%

Growth

Metric PAA WES Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 22.29% 14.88%
EPS growth (last fiscal year) 127.40% (25.87%) (7.78%)
Revenue growth, 5-year CAGR 13.70% 6.75% 10.05%
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 2.11 0.77
Current ratio 1.12 0.81 1.19
Net debt to EBITDA 4.58 3.37 3.46

Dividend

Metric PAA WES Oil & Gas Midstream median
Dividend yield 6.80% 9.25% 4.94%
Payout ratio 0.46 1.20 0.73

Size

Metric PAA WES Oil & Gas Midstream median
Market cap 17.31b 16.47b 3.56b

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