Gibson Energy (TSE:GEI) and Pembina Pipeline (TSE:PPL) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Earnings and Valuation
This table compares Gibson Energy and Pembina Pipeline's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Gibson Energy | C$4.94 billion | 0.65 | C$119.37 million | C$0.82 | 27.07 |
Pembina Pipeline | C$6.26 billion | 3.03 | C$887.62 million | C$1.61 | 21.37 |
Pembina Pipeline has higher revenue and earnings than Gibson Energy. Pembina Pipeline is trading at a lower price-to-earnings ratio than Gibson Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gibson Energy and Pembina Pipeline's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Gibson Energy | N/A | N/A | N/A |
Pembina Pipeline | N/A | N/A | N/A |
Dividends
Gibson Energy pays an annual dividend of C$1.36 per share and has a dividend yield of 6.1%. Pembina Pipeline pays an annual dividend of C$2.52 per share and has a dividend yield of 7.3%. Gibson Energy pays out 165.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pembina Pipeline pays out 156.1% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Gibson Energy and Pembina Pipeline, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Gibson Energy | 0 | 9 | 1 | 0 | 2.10 |
Pembina Pipeline | 0 | 10 | 7 | 0 | 2.41 |
Gibson Energy currently has a consensus target price of C$23.88, indicating a potential upside of 7.34%. Pembina Pipeline has a consensus target price of C$39.00, indicating a potential upside of 13.34%. Given Pembina Pipeline's stronger consensus rating and higher probable upside, analysts plainly believe Pembina Pipeline is more favorable than Gibson Energy.
Summary
Pembina Pipeline beats Gibson Energy on 9 of the 10 factors compared between the two stocks.