VTTI Energy Partners (NYSE: VTTI) and Pembina Pipeline (NYSE:PBA) are both oil & gas transportation services – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
VTTI Energy Partners pays an annual dividend of $1.34 per share and has a dividend yield of 6.9%. Pembina Pipeline pays an annual dividend of $1.70 per share and has a dividend yield of 4.9%. VTTI Energy Partners pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pembina Pipeline pays out 171.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VTTI Energy Partners has increased its dividend for 2 consecutive years. VTTI Energy Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares VTTI Energy Partners and Pembina Pipeline’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VTTI Energy Partners||35.11%||8.09%||7.61%|
Earnings & Valuation
This table compares VTTI Energy Partners and Pembina Pipeline’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VTTI Energy Partners||N/A||N/A||N/A||$0.81||24.07|
|Pembina Pipeline||$3.22 billion||5.39||$351.92 million||$0.99||34.88|
Pembina Pipeline has higher revenue and earnings than VTTI Energy Partners. VTTI Energy Partners is trading at a lower price-to-earnings ratio than Pembina Pipeline, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
VTTI Energy Partners has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Pembina Pipeline has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
This is a breakdown of recent recommendations for VTTI Energy Partners and Pembina Pipeline, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VTTI Energy Partners||0||3||0||0||2.00|
VTTI Energy Partners presently has a consensus price target of $19.50, suggesting a potential upside of 0.00%. Given VTTI Energy Partners’ higher possible upside, equities analysts clearly believe VTTI Energy Partners is more favorable than Pembina Pipeline.
Institutional & Insider Ownership
74.5% of VTTI Energy Partners shares are held by institutional investors. Comparatively, 42.5% of Pembina Pipeline shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
VTTI Energy Partners beats Pembina Pipeline on 8 of the 13 factors compared between the two stocks.
About VTTI Energy Partners
VTTI Energy Partners LP provides terminaling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. The Company operates through the segment of energy storage terminaling business. Its assets consist of approximately 42.6% interest in VTTI MLP B.V., which owns a portfolio of over six terminals with over 400 tanks and approximately 35.7 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America. Its terminals are located in international supply and demand centers for refined petroleum products and crude oil and provide midstream infrastructure services to its customers at these international market hubs. It provides storage and terminaling services for energy industry participants, including marketing companies, integrated oil companies, national oil companies, distributors, and chemical and petrochemical companies.
About Pembina Pipeline
Pembina Pipeline Corporation is an energy transportation and service provider. The Company operates through four segments. The Conventional Pipelines segment consists of the tariff-based operations of pipelines and related facilities to deliver crude oil, condensate and natural gas liquids (NGL) in Alberta, British Columbia, Saskatchewan, and North Dakota, United States. The Oil Sands & Heavy Oil segment consists of the Syncrude, Horizon, Nipisi and Mitsue Pipelines, and the Cheecham Lateral. These pipelines and related facilities deliver synthetic crude oil produced from oil sands under long-term cost-of-service arrangements. The Gas Services segment consists of natural gas gathering and processing facilities. The Midstream segment consists of the Company’s interests in extraction and fractionation facilities, terminalling and storage hub services under a mixture of short, medium and long-term contractual arrangements.
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