Pembina Pipeline Corp. (PBA) vs Viper Energy Inc. (VNOM)

Pembina Pipeline Corp. and Viper Energy Inc. are both Oil & Gas Midstream companies. Pembina Pipeline Corp. is the larger, with a market value of $27.7B against $14.4B — 1.9× the size. Viper Energy Inc. trades at the lower P/E: 18.1× against 23.3×. Viper Energy Inc. grew revenue faster over the last twelve months: 92.1% against 2.50%. Pembina Pipeline Corp. has the higher net margin (20.1% vs 12.1%) and the higher return on invested capital (6.10% vs 4.01%). Both pay a dividend; Viper Energy Inc. yields more (6.14% vs 4.38%). Across the 22 metrics below, Viper Energy Inc. leads on 13 and Pembina Pipeline Corp. on 9.

Valuation

Metric PBA VNOM Oil & Gas Midstream median
P/E 23.32 18.10 11.68
P/S 4.69 3.39 2.39
P/B 2.51 0.74 1.68
Price to free cash flow 17.52 74.48 8.52
EV/EBITDA 13.21 9.84 9.03
EV/Sales 6.28 4.60 3.43
Earnings yield 4.29% 5.53% 7.78%
Free cash flow yield 5.71% 1.34% 7.11%

Profitability

Metric PBA VNOM Oil & Gas Midstream median
Gross margin 40.97% 100.00% 54.87%
Operating margin 35.83% 36.16% 34.73%
Net margin 20.12% 12.08% 20.12%
Free cash flow margin 26.77% 4.55% 14.43%
Return on equity 10.84% 2.58% 11.73%
Return on assets 4.60% 2.07% 4.43%
Return on invested capital 6.10% 4.01% 6.10%

Growth

Metric PBA VNOM Oil & Gas Midstream median
Revenue growth (TTM) 2.50% 92.09% 14.88%
EPS growth (last fiscal year) (13.06%) (112.57%) (7.78%)
Revenue growth, 5-year CAGR 4.31% 40.96% 10.05%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PBA VNOM Oil & Gas Midstream median
Debt to equity 0.77 0.23 0.77
Current ratio 0.62 5.92 1.19
Net debt to EBITDA 3.31 4.65 3.46

Dividend

Metric PBA VNOM Oil & Gas Midstream median
Dividend yield 4.38% 6.14% 4.94%
Payout ratio 1.03 1.12 0.73

Size

Metric PBA VNOM Oil & Gas Midstream median
Market cap 27.70b 14.36b 3.56b

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