Dawson Geophysical (NYSE: PBA) and Pembina Pipeline (NYSE:PBA) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dawson Geophysical and Pembina Pipeline, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dawson Geophysical 0 0 1 0 3.00
Pembina Pipeline 0 1 0 0 2.00

Profitability

This table compares Dawson Geophysical and Pembina Pipeline’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dawson Geophysical -8.62% -10.51% -8.81%
Pembina Pipeline 17.40% 10.09% 4.46%

Institutional & Insider Ownership

68.8% of Dawson Geophysical shares are owned by institutional investors. Comparatively, 47.6% of Pembina Pipeline shares are owned by institutional investors. 8.0% of Dawson Geophysical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Pembina Pipeline pays an annual dividend of $1.75 per share and has a dividend yield of 5.3%. Dawson Geophysical does not pay a dividend. Pembina Pipeline pays out 131.6% 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 has increased its dividend for 2 consecutive years.

Risk and Volatility

Dawson Geophysical has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Pembina Pipeline has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dawson Geophysical and Pembina Pipeline’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dawson Geophysical $157.15 million 0.84 -$31.26 million ($1.37) -4.21
Pembina Pipeline $4.11 billion 4.07 $687.31 million $1.33 24.83

Pembina Pipeline has higher revenue and earnings than Dawson Geophysical. Dawson Geophysical is trading at a lower price-to-earnings ratio than Pembina Pipeline, indicating that it is currently the more affordable of the two stocks.

Summary

Pembina Pipeline beats Dawson Geophysical on 10 of the 16 factors compared between the two stocks.

About Dawson Geophysical

Dawson Geophysical Company provides onshore seismic data acquisition services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries. As of December 31, 2017, it operated nine seismic crews consisting of six crews in the United States and three crews in Canada. It operates seismic crews that supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas. The company also serves the potash mining industry. Dawson Geophysical Company was founded in 1952 and is headquartered in Midland, Texas with three additional offices in Denison, Houston, and Plano, Texas, as well as in Oklahoma City, Oklahoma and Denver, Colorado.

About Pembina Pipeline

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America. It operates through three divisions: Pipelines, Facilities, and Marketing & New Ventures. The company operates approximately 10,000 kilometers of pipeline network that transports hydrocarbon liquids and extends across Alberta and parts of British Columbia, Saskatchewan, and North Dakota; and owns and operates the Nipisi and Mitsue pipelines, which provide transportation for producers operating in the Pelican Lake and Peace River heavy oil regions of Alberta; transports synthetic crude oil for the Syncrude project and the Horizon project to delivery points near Edmonton, Alberta; and operates Cheecham Lateral, which transports synthetic crude to oil sands producers operating southeast of Fort McMurray, Alberta. Its Oil Sands & Heavy Oil business operates approximately 1,650 kilometers of pipeline and has 1,060 thousands of barrels per day of capacity. In addition, the company provides natural gas gathering, compression, condensate stabilization, and shallow and deep cut processing services. Further, its NGL Midstream business offers products and services, including storage, terminalling, and hub services through 14 truck terminals; 21 inbound and 13 outbound pipeline connections; 1.2 mmbpd of crude oil and condensate supply; and approximately 900 mbbls of ground storage in the Edmonton North Terminal, as well as 2 NGL operating systems. Additionally, the company offers tariff-based operations of pipelines and related facilities; natural gas gathering and processing facilities; NGL fractionation facility and gas processing capacity near Chicago, Illinois; and other natural gas and NGL processing facilities, logistics, and distribution assets in the United States and Canada. Pembina Pipeline Corporation was founded in 1997 and is headquartered in Calgary, Canada.

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