Head-To-Head Comparison: Anadarko Petroleum (NASDAQ:APC) vs. Pembina Pipeline (NYSE:PBA)

Anadarko Petroleum (NASDAQ:APC) and Pembina Pipeline (NYSE:PBA) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Profitability

This table compares Anadarko Petroleum and Pembina Pipeline’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anadarko Petroleum	0.65%	23.25%	3.11%
Pembina Pipeline	22.41%	11.41%	4.82%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Anadarko Petroleum and Pembina Pipeline, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anadarko Petroleum	1	1	4	1	2.71
Pembina Pipeline	0	5	5	0	2.50

Anadarko Petroleum currently has a consensus price target of $21.40, indicating a potential upside of 44.89%. Pembina Pipeline has a consensus price target of $64.00, indicating a potential upside of 34.35%. Given Anadarko Petroleum’s stronger consensus rating and higher probable upside, equities analysts plainly believe Anadarko Petroleum is more favorable than Pembina Pipeline.

Institutional & Insider Ownership

55.4% of Pembina Pipeline shares are held by institutional investors. 0.5% of Anadarko Petroleum shares are held by insiders. Comparatively, 0.1% of Pembina Pipeline shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 13.5%. Pembina Pipeline pays an annual dividend of $2.12 per share and has a dividend yield of 4.5%. Anadarko Petroleum pays out 206.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Pembina Pipeline has raised its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Anadarko Petroleum and Pembina Pipeline”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anadarko Petroleum	$5.97 billion	0.03	$32.73 million	$0.97	15.23
Pembina Pipeline	$5.57 billion	4.98	$1.21 billion	$2.04	23.35

Pembina Pipeline has lower revenue, but higher earnings than Anadarko Petroleum. Anadarko Petroleum 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 Anadarko Petroleum on 10 of the 17 factors compared between the two stocks.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.

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.