Pembina Pipeline Corp. (PBA) vs Western Midstream Partners, LP (WES)

Pembina Pipeline Corp. and Western Midstream Partners, LP are both Oil & Gas Midstream companies. Pembina Pipeline Corp. is the larger, with a market value of $26.4B against $18.7B — 1.4× the size. Western Midstream Partners, LP trades at the lower P/E: 14.3× against 21.8×. Western Midstream Partners, LP grew revenue faster over the last twelve months: 18.0% against 2.50%. Western Midstream Partners, LP has the higher net margin (29.0% vs 20.1%) and the higher return on invested capital (8.16% vs 6.10%). Both pay a dividend; Western Midstream Partners, LP yields more (8.96% vs 5.87%). Across the 23 metrics below, Western Midstream Partners, LP leads on 18 and Pembina Pipeline Corp. on 5.

Valuation

Metric PBA WES Oil & Gas Midstream median
P/E 21.79 14.29 13.19
P/S 4.38 4.19 2.60
P/B 2.34 4.12 2.08
Price to free cash flow 16.37 15.35 10.14
EV/EBITDA 12.56 10.75 8.11
EV/Sales 5.97 6.26 3.89
Earnings yield 4.59% 7.00% 6.83%
Free cash flow yield 6.11% 6.51% 6.94%

Profitability

Metric PBA WES Oil & Gas Midstream median
Gross margin 40.97% 92.08% 58.81%
Operating margin 35.83% 40.23% 32.14%
Net margin 20.12% 29.00% 21.16%
Free cash flow margin 26.77% 27.30% 10.15%
Return on equity 10.84% 32.48% 11.30%
Return on assets 4.60% 8.82% 5.00%
Return on invested capital 6.10% 8.16% 6.13%

Growth

Metric PBA WES Oil & Gas Midstream median
Revenue growth (TTM) 2.50% 18.00% 15.44%
EPS growth (last fiscal year) (13.06%) (25.87%) —
Revenue growth, 5-year CAGR 4.31% 6.75% 8.96%
Net income growth, 5-year CAGR 0.00% 17.48% 0.00%

Health

Metric PBA WES Oil & Gas Midstream median
Debt to equity 0.77 2.06 0.78
Current ratio 0.62 0.91 1.19
Net debt to EBITDA 3.31 3.37 3.42

Dividend

Metric PBA WES Oil & Gas Midstream median
Dividend yield 5.87% 8.96% 7.29%
Payout ratio 0.54 — 0.64

Size

Metric PBA WES Oil & Gas Midstream median
Market cap 26.43b 18.74b 3.61b

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