World Point Terminals (WPT) versus Pembina Pipeline Corp. (PBA) Head to Head Analysis
World Point Terminals (NYSE: WPT) and Pembina Pipeline Corp. (NYSE:PBA) 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, valuation, profitability, risk, dividends and earnings.
This is a breakdown of recent ratings and recommmendations for World Point Terminals and Pembina Pipeline Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|World Point Terminals||0||2||0||0||2.00|
|Pembina Pipeline Corp.||0||0||6||0||3.00|
World Point Terminals presently has a consensus target price of $17.00, suggesting a potential downside of 1.68%. Pembina Pipeline Corp. has a consensus target price of $45.00, suggesting a potential upside of 37.11%. Given Pembina Pipeline Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe Pembina Pipeline Corp. is more favorable than World Point Terminals.
Institutional & Insider Ownership
13.2% of World Point Terminals shares are owned by institutional investors. Comparatively, 49.8% of Pembina Pipeline Corp. 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.
This table compares World Point Terminals and Pembina Pipeline Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|World Point Terminals||37.15%||19.57%||18.37%|
|Pembina Pipeline Corp.||12.12%||8.60%||3.85%|
Risk and Volatility
World Point Terminals has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Pembina Pipeline Corp. has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
World Point Terminals pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Pembina Pipeline Corp. pays an annual dividend of $1.63 per share and has a dividend yield of 5.0%. World Point Terminals pays out 116.5% 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 Corp. pays out 168.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. World Point Terminals is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares World Point Terminals and Pembina Pipeline Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|World Point Terminals||N/A||N/A||N/A||$1.03||16.79|
|Pembina Pipeline Corp.||$4.01 billion||3.30||$1.06 billion||$0.97||33.84|
Pembina Pipeline Corp. has higher revenue and earnings than World Point Terminals. World Point Terminals 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.
World Point Terminals Company Profile
World Point Terminals, LP owns, operates, develops and acquires liquid bulk storage terminals and other assets relating to the storage of petroleum products, including light refined products, heavy refined products and crude oil. The Company operates fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States. As of December 31, 2016, through its subsidiary, Center Point Terminal Company, LLC (Center Point), the Company owned and operated 15.6 million barrels of tankage at terminals, which are located in the East Coast, Gulf Coast and Midwest regions of the United States. The Company’s terminal facilities are located on waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with loading logistics. Its terminal facilities also have rail or pipeline access.
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.
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