Plains All American Pipeline (PAA) versus NuStar Energy (NS) Head-To-Head Survey

Plains All American Pipeline (NYSE: PAA) and NuStar Energy (NYSE:NS) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

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This table compares Plains All American Pipeline and NuStar Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Plains All American Pipeline 3.26% 10.01% 3.52%
NuStar Energy 8.16% 7.82% 2.44%

Analyst Recommendations

This is a breakdown of recent recommendations for Plains All American Pipeline and NuStar Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plains All American Pipeline 0 8 13 0 2.62
NuStar Energy 0 9 1 0 2.10

Plains All American Pipeline currently has a consensus target price of $26.44, suggesting a potential upside of 7.94%. NuStar Energy has a consensus target price of $29.00, suggesting a potential upside of 34.95%. Given NuStar Energy’s higher possible upside, analysts clearly believe NuStar Energy is more favorable than Plains All American Pipeline.

Dividends

Plains All American Pipeline pays an annual dividend of $1.20 per share and has a dividend yield of 4.9%. NuStar Energy pays an annual dividend of $4.38 per share and has a dividend yield of 20.4%. 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. NuStar Energy pays out 684.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

43.8% of Plains All American Pipeline shares are owned by institutional investors. Comparatively, 60.1% of NuStar Energy shares are owned by institutional investors. 1.1% of Plains All American Pipeline shares are owned by insiders. Comparatively, 4.1% of NuStar Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Plains All American Pipeline and NuStar Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Plains All American Pipeline $26.22 billion 0.68 $856.00 million $0.94 26.06
NuStar Energy $1.81 billion 1.10 $147.96 million $0.64 33.58

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

Risk & Volatility

Plains All American Pipeline has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, NuStar Energy has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

About Plains All American Pipeline

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

About NuStar Energy

NuStar Energy L.P. is engaged in the transportation of petroleum products and anhydrous ammonia; the terminalling and storage of petroleum products, and the marketing of petroleum products. The Company’s segments include pipeline, storage and fuels marketing. The pipeline segment consists of the transportation of refined petroleum products, crude oil and anhydrous ammonia. The storage segment consists of facilities that provide storage, handling and other services for petroleum products, crude oil, specialty chemicals and other liquids. The fuels marketing segment involve the purchase of crude oil, fuel oil, bunker fuel, fuel oil blending components and other refined products for resale. It conducts its operations through its subsidiaries, primarily NuStar Logistics, L.P. and NuStar Pipeline Operating Partnership L.P. As of May 4, 2017, it had more than 9,200 miles of pipeline and 81 terminal and storage facilities that provide approximately 96 million barrels of storage capacity.

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