Plains All American Pipeline, L.P. (NYSE: PAA) and Crestwood Midstream Partners (NYSE:CMLP) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Dividends

Plains All American Pipeline, L.P. pays an annual dividend of $2.20 per share and has a dividend yield of 10.5%. Crestwood Midstream Partners does not pay a dividend. Plains All American Pipeline, L.P. 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Plains All American Pipeline, L.P. and Crestwood Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plains All American Pipeline, L.P. 0 14 8 0 2.36
Crestwood Midstream Partners 0 0 0 0 N/A

Plains All American Pipeline, L.P. currently has a consensus target price of $27.37, indicating a potential upside of 30.26%. Given Plains All American Pipeline, L.P.’s higher probable upside, analysts plainly believe Plains All American Pipeline, L.P. is more favorable than Crestwood Midstream Partners.

Institutional & Insider Ownership

42.1% of Plains All American Pipeline, L.P. shares are owned by institutional investors. 1.3% of Plains All American Pipeline, L.P. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Plains All American Pipeline, L.P. and Crestwood Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Plains All American Pipeline, L.P. 4.42% 10.14% 3.41%
Crestwood Midstream Partners -0.22% -1.34% -0.17%

Valuation & Earnings

This table compares Plains All American Pipeline, L.P. and Crestwood Midstream Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Plains All American Pipeline, L.P. $23.87 billion 0.64 $2.01 billion $1.33 15.80
Crestwood Midstream Partners N/A N/A N/A N/A N/A

Plains All American Pipeline, L.P. has higher revenue and earnings than Crestwood Midstream Partners.

Summary

Plains All American Pipeline, L.P. beats Crestwood Midstream Partners on 9 of the 10 factors compared between the two stocks.

Plains All American Pipeline, L.P. Company Profile

Plains All American Pipeline, L.P. owns and operates midstream energy infrastructure and provide logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The Company operates through three segments: Transportation, Facilities, and Supply and Logistics. The Company’s transportation segment operations consist of activities associated with transporting crude oil and NGL on pipelines, gathering systems, trucks and barges. Its Facilities segment operations consist of activities associated with providing storage, terminaling and throughput services for crude oil, refined products, NGL and natural gas, as well as NGL fractionation and isomerization services and natural gas and condensate processing services. Its supply and logistics segment operations consist of the merchant-related activities, including the purchase of the United States and Canadian crude oil at the wellhead, the bulk purchase of crude oil at pipeline, terminal and rail facilities.

Crestwood Midstream Partners Company Profile

Crestwood Midstream Partners LP (Crestwood) develops, acquires, owns and operates primarily fee-based assets and operations within the energy midstream sector. The Company has three reporting segments: gathering and processing (G&P), providing natural gas gathering, processing, treating and compression services to producers in multiple unconventional shale plays; storage and transportation, which owns and operates natural gas storage facilities, and NGL and crude services, including crude oil rail terminals, the Arrow gathering system, its fleet of over-the-road crude oil and produced water transportation assets, an NGL storage facility, and US Salt, LLC. It provides infrastructure solutions across the value chain to service liquids-rich and crude oil shale plays across the United States. It owns and operates a portfolio of crude oil and natural gas gathering, processing, storage and transportation assets that connect fundamental energy supply with energy demand across North America.

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