Plains All American Pipeline (NYSE: PAA) and Rose Rock Midstream (NYSE:RRMS) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
Insider & Institutional Ownership
43.4% of Plains All American Pipeline shares are held by institutional investors. 1.3% of Plains All American Pipeline shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings for Plains All American Pipeline and Rose Rock Midstream, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Plains All American Pipeline||0||14||8||0||2.36|
|Rose Rock Midstream||0||0||0||0||N/A|
Plains All American Pipeline presently has a consensus target price of $26.06, suggesting a potential upside of 15.65%. Given Plains All American Pipeline’s higher probable upside, analysts plainly believe Plains All American Pipeline is more favorable than Rose Rock Midstream.
Plains All American Pipeline pays an annual dividend of $1.65 per share and has a dividend yield of 7.3%. Rose Rock Midstream pays an annual dividend of $2.64 per share and has a dividend yield of 9.7%. Plains All American Pipeline pays out 191.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rose Rock Midstream pays out 303.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plains All American Pipeline has raised its dividend for 6 consecutive years.
Valuation & Earnings
This table compares Plains All American Pipeline and Rose Rock Midstream’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Plains All American Pipeline||$20.18 billion||0.81||$726.00 million||$0.86||26.20|
|Rose Rock Midstream||N/A||N/A||N/A||$0.87||31.22|
Plains All American Pipeline has higher revenue and earnings than Rose Rock Midstream. Plains All American Pipeline is trading at a lower price-to-earnings ratio than Rose Rock Midstream, indicating that it is currently the more affordable of the two stocks.
This table compares Plains All American Pipeline and Rose Rock Midstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Plains All American Pipeline||3.22%||9.06%||3.10%|
|Rose Rock Midstream||5.87%||8.49%||3.12%|
Plains All American Pipeline beats Rose Rock Midstream on 8 of the 13 factors compared between the two stocks.
Plains All American Pipeline 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.
Rose Rock Midstream Company Profile
Rose Rock Midstream, L.P. owns, operates, develops and acquires diversified portfolio of midstream energy assets. The Company is engaged in providing midstream energy related services, such as crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. Its segments include Transportation, Facilities, and Supply and Logistics. Its Transportation segment operates crude oil pipelines and truck transportation businesses in the United States. Its Facilities segment operates crude oil storage and terminal businesses in the United States. Its Supply and Logistics segment operates a crude oil marketing and blending business in the United States. The Company operates in the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin (DJ Basin) and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and Mississippi Lime Play in the Mid-Continent region.
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