Pembina Pipeline (NYSE:PBA – Get Free Report) and Scorpio Tankers (NYSE:STNG – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Risk & Volatility
Pembina Pipeline has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Scorpio Tankers has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500.
Profitability
This table compares Pembina Pipeline and Scorpio Tankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pembina Pipeline | 22.41% | 11.41% | 4.82% |
| Scorpio Tankers | 67.16% | 16.43% | 13.14% |
Insider & Institutional Ownership
55.4% of Pembina Pipeline shares are owned by institutional investors. Comparatively, 54.6% of Scorpio Tankers shares are owned by institutional investors. 0.1% of Pembina Pipeline shares are owned by insiders. Comparatively, 7.3% of Scorpio Tankers shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Dividends
Pembina Pipeline pays an annual dividend of $2.12 per share and has a dividend yield of 4.2%. Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. Pembina Pipeline pays out 103.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scorpio Tankers pays out 11.2% of its earnings in the form of a dividend. Pembina Pipeline has raised its dividend for 4 consecutive years and Scorpio Tankers has raised its dividend for 2 consecutive years. Pembina Pipeline is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Pembina Pipeline and Scorpio Tankers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pembina Pipeline | 0 | 5 | 5 | 0 | 2.50 |
| Scorpio Tankers | 1 | 5 | 5 | 0 | 2.36 |
Pembina Pipeline presently has a consensus target price of $64.00, indicating a potential upside of 27.21%. Scorpio Tankers has a consensus target price of $92.14, indicating a potential upside of 7.34%. Given Pembina Pipeline’s stronger consensus rating and higher possible upside, analysts clearly believe Pembina Pipeline is more favorable than Scorpio Tankers.
Earnings & Valuation
This table compares Pembina Pipeline and Scorpio Tankers”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pembina Pipeline | $5.57 billion | 5.26 | $1.21 billion | $2.04 | 24.66 |
| Scorpio Tankers | $938.22 million | 4.61 | $344.29 million | $16.01 | 5.36 |
Pembina Pipeline has higher revenue and earnings than Scorpio Tankers. Scorpio Tankers is trading at a lower price-to-earnings ratio than Pembina Pipeline, indicating that it is currently the more affordable of the two stocks.
Summary
Pembina Pipeline beats Scorpio Tankers on 10 of the 16 factors compared between the two stocks.
About Pembina Pipeline
Pembina Pipeline Corporation provides energy transportation and midstream services. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 2.9 millions of barrels of oil equivalent per day, the ground storage capacity of 10 millions of barrels, and rail terminalling capacity of approximately 105 thousands of barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousands of barrels per day of NGL fractionation capacity, 21 millions of barrels of cavern storage capacity, and associated pipeline, and rail terminalling facilities and a liquefied propane export facility. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada.
About Scorpio Tankers
Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.
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