Pembina Pipeline Corp. (NYSE: PBA) and Andeavor Logistics (NASDAQ:ANDX) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pembina Pipeline Corp. and Andeavor Logistics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pembina Pipeline Corp. 0 0 6 0 3.00
Andeavor Logistics 0 2 4 0 2.67

Pembina Pipeline Corp. presently has a consensus target price of $45.00, suggesting a potential upside of 34.13%. Andeavor Logistics has a consensus target price of $59.17, suggesting a potential upside of 32.48%. Given Pembina Pipeline Corp.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Pembina Pipeline Corp. is more favorable than Andeavor Logistics.

Earnings and Valuation

This table compares Pembina Pipeline Corp. and Andeavor Logistics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pembina Pipeline Corp. $3.22 billion 5.24 $351.92 million $0.97 34.59
Andeavor Logistics N/A N/A N/A N/A N/A

Pembina Pipeline Corp. has higher revenue and earnings than Andeavor Logistics.

Dividends

Pembina Pipeline Corp. pays an annual dividend of $1.73 per share and has a dividend yield of 5.2%. Andeavor Logistics does not pay a dividend. Pembina Pipeline Corp. pays out 178.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Pembina Pipeline Corp. and Andeavor Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pembina Pipeline Corp. 12.12% 8.60% 3.85%
Andeavor Logistics 26.63% 15.11% 7.53%

Insider and Institutional Ownership

50.1% of Pembina Pipeline Corp. shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Pembina Pipeline Corp. beats Andeavor Logistics on 6 of the 10 factors compared between the two stocks.

About Pembina Pipeline Corp.

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 Andeavor Logistics

Andeavor Logistics LP, formerly Tesoro Logistics LP, is a full-service logistics company operating in the western and mid-continent regions of the United States. The Company operates through three segments. Its Gathering segment consists of crude oil, natural gas and produced water gathering systems in the Bakken Region and Rockies Region. Its Processing segment consists of the Vermillion processing complex, the Uinta Basin processing complex, the Blacks Fork processing complex and the Emigrant Trail processing complex. Its Terminalling and Transportation segment consists of the Northwest Products Pipeline, which includes a regulated common carrier products, a regulated common carrier refined products pipeline system connecting Tesoro Corporation’s Kenai refinery to Anchorage, Alaska, and crude oil and refined products terminals and storage facilities in the western and midwestern United States; marine terminals in California; a petroleum coke handling and storage facility.

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