Plains Group Holdings, L.P. (PAGP) vs Western Midstream Partners, LP (WES)

Plains Group Holdings, L.P. and Western Midstream Partners, LP are both Oil & Gas Midstream companies. Plains Group Holdings, L.P. and Western Midstream Partners, LP are of similar size ($20.3B and $18.7B). Plains Group Holdings, L.P. trades at the lower P/E: 9.5× 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 1.06%) and the higher return on invested capital (8.16% vs 4.51%). Both pay a dividend; Western Midstream Partners, LP yields more (8.96% vs 6.88%). Across the 23 metrics below, Plains Group Holdings, L.P. leads on 12 and Western Midstream Partners, LP on 11.

Valuation

Metric PAGP WES Oil & Gas Midstream median
P/E 9.47 14.29 13.19
P/S 0.10 4.19 2.60
P/B 0.34 4.12 2.08
Price to free cash flow 2.16 15.35 10.14
EV/EBITDA 4.84 10.75 8.11
EV/Sales 0.24 6.26 3.89
Earnings yield 10.56% 7.00% 6.83%
Free cash flow yield 46.37% 6.51% 6.94%

Profitability

Metric PAGP WES Oil & Gas Midstream median
Gross margin 5.55% 92.08% 58.81%
Operating margin 3.13% 40.23% 32.14%
Net margin 1.06% 29.00% 21.16%
Free cash flow margin 4.65% 27.30% 10.15%
Return on equity 3.77% 32.48% 11.30%
Return on assets 1.90% 8.82% 5.00%
Return on invested capital 4.51% 8.16% 6.13%

Growth

Metric PAGP WES Oil & Gas Midstream median
Revenue growth (TTM) 13.08% 18.00% 15.44%
EPS growth (last fiscal year) 150.00% (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 PAGP WES Oil & Gas Midstream median
Debt to equity 0.55 2.06 0.78
Current ratio 1.12 0.91 1.19
Net debt to EBITDA 4.59 3.37 3.42

Dividend

Metric PAGP WES Oil & Gas Midstream median
Dividend yield 6.88% 8.96% 7.29%
Payout ratio — — 0.64

Size

Metric PAGP WES Oil & Gas Midstream median
Market cap 20.34b 18.74b 3.61b

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