Plains Group Holdings, L.P. (PAGP) vs Viper Energy Inc. (VNOM)

Plains Group Holdings, L.P. and Viper Energy Inc. are both Oil & Gas Midstream companies. Plains Group Holdings, L.P. is the larger, with a market value of $20.1B against $14.4B — 1.4× the size. Plains Group Holdings, L.P. trades at the lower P/E: 9.2× against 18.4×. 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 1.06%) and the lower return on invested capital (4.01% vs 4.51%). Both pay a dividend; Plains Group Holdings, L.P. yields more (6.48% vs 6.03%). Across the 22 metrics below, Plains Group Holdings, L.P. leads on 13 and Viper Energy Inc. on 9.

Valuation

Metric PAGP VNOM Oil & Gas Midstream median
P/E 9.21 18.40 11.80
P/S 0.10 3.45 2.38
P/B 0.33 0.75 1.65
Price to free cash flow 2.10 7.38 7.76
EV/EBITDA 4.79 6.38 7.88
EV/Sales 0.24 4.66 3.36
Earnings yield 10.86% 5.43% 7.98%
Free cash flow yield 47.67% 13.56% 7.23%

Profitability

Metric PAGP VNOM Oil & Gas Midstream median
Gross margin 5.55% 100.00% 55.22%
Operating margin 3.13% 36.16% 35.83%
Net margin 1.06% 12.08% 20.12%
Free cash flow margin 4.65% 46.76% 14.43%
Return on equity 3.77% 2.58% 14.03%
Return on assets 1.90% 2.07% 4.62%
Return on invested capital 4.51% 4.01% 6.10%

Growth

Metric PAGP VNOM Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 92.09% 15.70%
EPS growth (last fiscal year) 154.90% (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 PAGP VNOM Oil & Gas Midstream median
Debt to equity 0.55 0.23 0.77
Current ratio 1.12 5.92 1.16
Net debt to EBITDA 4.59 4.65 3.46

Dividend

Metric PAGP VNOM Oil & Gas Midstream median
Dividend yield 6.48% 6.03% 5.03%
Payout ratio 0.60 1.12 0.73

Size

Metric PAGP VNOM Oil & Gas Midstream median
Market cap 20.11b 14.36b 3.30b

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