Plains GP (NYSE:PAGP – Get Free Report) and Mesa Royalty Trust (NYSE:MTR – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Volatility & Risk
Plains GP has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Mesa Royalty Trust has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
Earnings and Valuation
This table compares Plains GP and Mesa Royalty Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Plains GP | $52.30 billion | 0.10 | $103.00 million | $2.79 | 9.24 |
| Mesa Royalty Trust | $600,000.00 | 5.97 | $510,000.00 | $0.16 | 12.03 |
Plains GP has higher revenue and earnings than Mesa Royalty Trust. Plains GP is trading at a lower price-to-earnings ratio than Mesa Royalty Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Plains GP and Mesa Royalty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Plains GP | 0.21% | 0.70% | 0.36% |
| Mesa Royalty Trust | 60.59% | 9.17% | 8.82% |
Institutional and Insider Ownership
88.3% of Plains GP shares are held by institutional investors. Comparatively, 12.7% of Mesa Royalty Trust shares are held by institutional investors. 6.9% of Plains GP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Plains GP and Mesa Royalty Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Plains GP | 2 | 6 | 5 | 1 | 2.36 |
| Mesa Royalty Trust | 1 | 0 | 0 | 0 | 1.00 |
Plains GP currently has a consensus price target of $26.00, indicating a potential upside of 0.85%. Given Plains GP’s stronger consensus rating and higher possible upside, research analysts plainly believe Plains GP is more favorable than Mesa Royalty Trust.
Summary
Plains GP beats Mesa Royalty Trust on 11 of the 15 factors compared between the two stocks.
About Plains GP
Plains GP Holdings, L.P., through its subsidiary, Plains All American Pipeline, L.P., owns and operates midstream infrastructure systems in the United States and Canada. It operates in two segments, Crude Oil and Natural Gas Liquids (NGLs). The company engages in the gathering and transporting crude oil and NGLs using pipelines, gathering systems, and trucks. It engages in the loading and unloading services at terminals; NGL fractionation and isomerization services; and natural gas and condensate processing services. The company offers logistics services to producers, refiners, and other customers. PAA GP Holdings LLC operates as a general partner of the company. Plains GP Holdings, L.P. was incorporated in 2013 and is headquartered in Houston, Texas.
About Mesa Royalty Trust
Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and is based in Houston, Texas.
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