Head to Head Survey: BP Midstream Partners GP (BPMP) vs. Plains All American Pipeline (PAA)

BP Midstream Partners GP (NYSE: BPMP) and Plains All American Pipeline (NYSE:PAA) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

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49.7% of BP Midstream Partners GP shares are owned by institutional investors. Comparatively, 43.8% of Plains All American Pipeline shares are owned by institutional investors. 1.3% of Plains All American Pipeline shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares BP Midstream Partners GP and Plains All American Pipeline’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BP Midstream Partners GP $108.15 million 16.92 $60.87 million $0.21 83.19
Plains All American Pipeline $26.22 billion 0.66 $856.00 million $0.94 25.39

Plains All American Pipeline has higher revenue and earnings than BP Midstream Partners GP. Plains All American Pipeline is trading at a lower price-to-earnings ratio than BP Midstream Partners GP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BP Midstream Partners GP and Plains All American Pipeline’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BP Midstream Partners GP N/A N/A N/A
Plains All American Pipeline 3.26% 10.01% 3.52%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BP Midstream Partners GP and Plains All American Pipeline, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BP Midstream Partners GP 0 6 3 0 2.33
Plains All American Pipeline 0 9 13 0 2.59

BP Midstream Partners GP presently has a consensus target price of $20.88, indicating a potential upside of 19.49%. Plains All American Pipeline has a consensus target price of $26.53, indicating a potential upside of 11.13%. Given BP Midstream Partners GP’s higher probable upside, research analysts clearly believe BP Midstream Partners GP is more favorable than Plains All American Pipeline.

Dividends

BP Midstream Partners GP pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Plains All American Pipeline pays an annual dividend of $1.20 per share and has a dividend yield of 5.0%. BP Midstream Partners GP pays out 342.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plains All American Pipeline pays out 127.7% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Plains All American Pipeline beats BP Midstream Partners GP on 11 of the 15 factors compared between the two stocks.

BP Midstream Partners GP Company Profile

BP Midstream Partners LP owns, acquires, operates, and develops pipelines and other midstream assets. It owns an onshore crude oil pipeline system, onshore refined products pipeline system, onshore diluent pipeline system, and offshore natural gas pipeline system, as well as interests in four offshore crude oil pipeline systems located in the United States. The company was founded in 2017 and is based in Houston, Texas. BP Midstream Partners LP is a subsidiary of BP Pipelines (North America) Inc.

Plains All American Pipeline Company Profile

Plains All American Pipeline, L.P., through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids (NGL), and natural gas in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. The Transportation segment transports crude oil and NGL through pipelines, gathering systems, trucks, and barges. As of December 31, 2017, this segment owned and leased 18,700 miles of active crude oil and NGL pipelines and gathering systems; 32 million barrels of active and above-ground tank capacity; 810 trailers; 60 transport and storage barges; and 30 transport tugs. The Facilities segment provides storage, terminalling, and throughput services for crude oil, NGL, and natural gas; and NGL fractionation and isomerization, and natural gas and condensate processing services. This segment owned and operated approximately 77 million barrels of crude oil storage capacity; 34 million barrels of NGL storage capacity; 67 billion cubic feet of natural gas storage working capacity; 25 billion cubic feet of base gas; 9 natural gas processing plants; 1 condensate processing facility; 8 fractionation plants; 34 crude oil and NGL rail terminals; 5 marine facilities; and 1,000 miles of active pipelines. The Supply and Logistics segment purchases crude oil at the wellhead, pipeline, terminal, and rail facilities; stores inventory, and NGL and natural gas; purchases NGL; resells or exchanges crude oil and NGL; and transports crude oil and NGL on trucks, barges, railcars, pipelines, and vessels. This segment owned 14 million barrels of crude oil and NGL linefill; 4 million barrels of crude oil and NGL linefill; 730 trucks and 900 trailers; and 10,100 crude oil and NGL railcars. Plains All American Pipeline, L.P. was founded in 1998 and is headquartered in Houston, Texas. Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P

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