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Financial Analysis: Plains All American Pipeline (PAA) versus Its Competitors
Defense World· 2025-12-27 07:30
Core Viewpoint - Plains All American Pipeline is compared to its competitors in the "Pipelines, Except Natural Gas" industry, highlighting its financial metrics, dividend policy, and analyst ratings, indicating a mixed performance relative to peers [1][10]. Dividends - Plains All American Pipeline pays an annual dividend of $1.52 per share, resulting in a dividend yield of 8.6%. The company has a payout ratio of 125.6%, suggesting potential challenges in sustaining its dividend payments in the future. In comparison, the industry average dividend yield is 7.7% with a payout ratio of 112.0% [1]. Earnings and Valuation - The company reported gross revenue of $50.07 billion and net income of $772 million, with a price-to-earnings (P/E) ratio of 14.59. In contrast, its competitors have an average gross revenue of $10.13 billion, net income of $374.42 million, and a higher P/E ratio of 15.94, indicating that Plains All American Pipeline is more affordable than its rivals [3]. Profitability - Plains All American Pipeline has a net margin of 2.42%, return on equity of 11.04%, and return on assets of 4.41%. Comparatively, its competitors have significantly higher net margins (32.45%), return on equity (36.20%), and return on assets (10.59%) [5]. Institutional & Insider Ownership - Institutional investors own 41.8% of Plains All American Pipeline shares, which is lower than the industry average of 47.7%. Insider ownership stands at 0.9%, compared to 2.9% for the industry, indicating less confidence from insiders in the company's long-term growth potential [6]. Risk and Volatility - The company has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. In comparison, its competitors have a beta of 0.95, suggesting their stock prices are only 5% less volatile than the S&P 500 [7]. Analyst Ratings - Plains All American Pipeline has received 0 sell ratings, 0 hold ratings, 1 buy rating, and no strong buy ratings, resulting in a rating score of 3.00. In contrast, competitors have a higher number of ratings and a potential upside of 8.55%, suggesting analysts view Plains All American Pipeline as having less favorable growth prospects [9].