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 $27.7B against $16.5B — 1.7× the size. Western Midstream Partners, LP trades at the lower P/E: 12.8× against 23.5×. Western Midstream Partners, LP grew revenue faster over the last twelve months: 22.3% against 2.50%. Pembina Pipeline Corp. has the higher net margin (20.1% vs 0.00%) and the lower return on invested capital (6.10% vs 8.19%). Both pay a dividend; Western Midstream Partners, LP yields more (9.31% vs 4.35%). Across the 23 metrics below, Western Midstream Partners, LP leads on 16 and Pembina Pipeline Corp. on 7.

Valuation

Metric PBA WES Oil & Gas Midstream median
P/E 23.48 12.78 11.80
P/S 4.72 3.59 2.38
P/B 2.52 3.78 1.65
Price to free cash flow 17.64 13.99 7.76
EV/EBITDA 13.27 10.12 7.88
EV/Sales 6.31 5.58 3.36
Earnings yield 4.26% 7.82% 7.98%
Free cash flow yield 5.67% 7.15% 7.23%

Profitability

Metric PBA WES Oil & Gas Midstream median
Gross margin 40.97% 90.96% 55.22%
Operating margin 35.83% 38.54% 35.83%
Net margin 20.12% 0.00% 20.12%
Free cash flow margin 26.77% 45.63% 14.43%
Return on equity 10.84% 0.00% 14.03%
Return on assets 4.60% 0.00% 4.62%
Return on invested capital 6.10% 8.19% 6.10%

Growth

Metric PBA WES Oil & Gas Midstream median
Revenue growth (TTM) 2.50% 22.29% 15.70%
EPS growth (last fiscal year) (13.06%) (25.87%) (7.78%)
Revenue growth, 5-year CAGR 4.31% 6.75% 10.05%
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 2.11 0.77
Current ratio 0.62 0.81 1.16
Net debt to EBITDA 3.31 3.37 3.46

Dividend

Metric PBA WES Oil & Gas Midstream median
Dividend yield 4.35% 9.31% 5.03%
Payout ratio 1.03 1.20 0.73

Size

Metric PBA WES Oil & Gas Midstream median
Market cap 27.70b 16.47b 3.30b

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