Pembina Pipeline Corp. (PBA) vs. Tallgrass Energy Partners, (TEP) Financial Survey
Pembina Pipeline Corp. (NYSE: PBA) and Tallgrass Energy Partners, (NYSE:TEP) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Pembina Pipeline Corp. pays an annual dividend of $1.73 per share and has a dividend yield of 4.9%. Tallgrass Energy Partners, pays an annual dividend of $3.70 per share and has a dividend yield of 8.3%. Pembina Pipeline Corp. pays out 174.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tallgrass Energy Partners, pays out 98.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tallgrass Energy Partners, has increased its dividend for 3 consecutive years. Tallgrass Energy Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Pembina Pipeline Corp. has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Tallgrass Energy Partners, has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
This is a breakdown of current recommendations for Pembina Pipeline Corp. and Tallgrass Energy Partners,, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pembina Pipeline Corp.||0||0||4||0||3.00|
|Tallgrass Energy Partners,||0||4||5||0||2.56|
Pembina Pipeline Corp. currently has a consensus target price of $44.00, indicating a potential upside of 23.66%. Tallgrass Energy Partners, has a consensus target price of $60.00, indicating a potential upside of 34.89%. Given Tallgrass Energy Partners,’s higher possible upside, analysts plainly believe Tallgrass Energy Partners, is more favorable than Pembina Pipeline Corp..
Insider & Institutional Ownership
40.8% of Pembina Pipeline Corp. shares are owned by institutional investors. Comparatively, 63.0% of Tallgrass Energy Partners, shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Pembina Pipeline Corp. and Tallgrass Energy Partners,’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Pembina Pipeline Corp.||$3.22 billion||5.55||$351.92 million||$0.99||35.94|
|Tallgrass Energy Partners,||$605.12 million||5.38||$263.52 million||$3.74||11.89|
Pembina Pipeline Corp. has higher revenue and earnings than Tallgrass Energy Partners,. Tallgrass Energy Partners, is trading at a lower price-to-earnings ratio than Pembina Pipeline Corp., indicating that it is currently the more affordable of the two stocks.
This table compares Pembina Pipeline Corp. and Tallgrass Energy Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pembina Pipeline Corp.||11.66%||8.36%||3.65%|
|Tallgrass Energy Partners,||64.13%||27.58%||11.52%|
Tallgrass Energy Partners, beats Pembina Pipeline Corp. on 11 of the 16 factors compared between the two stocks.
Pembina Pipeline Corp. Company Profile
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.
Tallgrass Energy Partners, Company Profile
Tallgrass Energy Partners, LP owns, operates, acquires and develops midstream energy assets in North America. The Company operates through three segments: Crude Oil Transportation & Logistics, Natural Gas Transportation & Logistics and Processing & Logistics. The Crude Oil Transportation & Logistics segment includes the ownership and operation of a Federal Energy Regulatory Commission (FERC) crude oil pipeline system, and crude oil storage and terminaling facilities. The Natural Gas Transportation & Logistics segment is engaged in the ownership and operation of FERC regulated interstate natural gas pipelines and integrated natural gas storage facilities. The Processing & Logistics segment is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities; the provision of water business services primarily to the oil and gas exploration and production industry, and the transportation of natural gas liquids (NGLs).
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