Pembina Pipeline (NYSE: PBA) and Enbridge Energy Management (NYSE:EEQ) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Pembina Pipeline pays an annual dividend of $1.68 per share and has a dividend yield of 4.7%. Enbridge Energy Management pays an annual dividend of $0.55 per share and has a dividend yield of 4.1%. Pembina Pipeline pays out 169.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge Energy Management pays out -785.7% of its earnings in the form of a dividend.
Pembina Pipeline has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Enbridge Energy Management has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Pembina Pipeline and Enbridge Energy Management, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enbridge Energy Management||0||2||0||0||2.00|
Enbridge Energy Management has a consensus price target of $20.00, indicating a potential upside of 50.60%. Given Enbridge Energy Management’s higher possible upside, analysts plainly believe Enbridge Energy Management is more favorable than Pembina Pipeline.
Earnings & Valuation
This table compares Pembina Pipeline and Enbridge Energy Management’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pembina Pipeline||$3.22 billion||5.60||$351.92 million||$0.99||36.25|
|Enbridge Energy Management||N/A||N/A||-$120.10 million||($0.07)||-189.71|
Pembina Pipeline has higher revenue and earnings than Enbridge Energy Management. Enbridge Energy Management is trading at a lower price-to-earnings ratio than Pembina Pipeline, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
42.3% of Pembina Pipeline shares are owned by institutional investors. Comparatively, 74.6% of Enbridge Energy Management shares are owned by institutional investors. 0.3% of Enbridge Energy Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Pembina Pipeline and Enbridge Energy Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enbridge Energy Management||N/A||-800.00%||-800.00%|
Pembina Pipeline beats Enbridge Energy Management on 10 of the 15 factors compared between the two stocks.
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.
About Enbridge Energy Management
Enbridge Energy Management, L.L.C. is a limited partner of Enbridge Energy Partners, L.P. (the Partnership). The Company owns i-units, a special class of the Partnership’s limited partner interests. The Company manages the business of the Partnership. The Partnership owns and operates crude oil and liquid petroleum transportation and storage assets, and natural gas gathering, treating, processing, transportation and marketing assets in the United States.
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