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 $20.3B against $15.0B — 1.4× the size. Plains Group Holdings, L.P. trades at the lower P/E: 9.5× against 292×. Viper Energy Inc. grew revenue faster over the last twelve months: 107.8% against 13.1%. Viper Energy Inc. has the higher net margin (2.89% vs 1.06%) and the lower return on invested capital (1.32% vs 4.51%). Both pay a dividend; Plains Group Holdings, L.P. yields more (6.88% vs 6.49%). Across the 22 metrics below, Plains Group Holdings, L.P. leads on 14 and Viper Energy Inc. on 8.

Valuation

Metric PAGP VNOM Oil & Gas Midstream median
P/E 9.47 292.36 13.19
P/S 0.10 3.89 2.60
P/B 0.34 0.77 2.08
Price to free cash flow 2.16 10.38 10.14
EV/EBITDA 4.84 9.28 8.11
EV/Sales 0.24 4.86 3.89
Earnings yield 10.56% 0.34% 6.83%
Free cash flow yield 46.37% 9.63% 6.94%

Profitability

Metric PAGP VNOM Oil & Gas Midstream median
Gross margin 5.55% 100.00% 58.81%
Operating margin 3.13% 12.30% 32.14%
Net margin 1.06% 2.89% 21.16%
Free cash flow margin 4.65% 37.43% 10.15%
Return on equity 3.77% 0.62% 11.30%
Return on assets 1.90% 0.54% 5.00%
Return on invested capital 4.51% 1.32% 6.13%

Growth

Metric PAGP VNOM Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 107.84% 15.44%
EPS growth (last fiscal year) 150.00% (112.57%) —
Revenue growth, 5-year CAGR 13.70% 40.96% 8.96%
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 0.16 0.78
Current ratio 1.12 6.37 1.19
Net debt to EBITDA 4.59 4.65 3.42

Dividend

Metric PAGP VNOM Oil & Gas Midstream median
Dividend yield 6.88% 6.49% 7.29%
Payout ratio — — 0.64

Size

Metric PAGP VNOM Oil & Gas Midstream median
Market cap 20.34b 14.96b 3.61b

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