Reviewing Plains All American Pipeline (NYSE:PAA) and HF Sinclair (NYSE:DINO)

Plains All American Pipeline (NYSE:PAAGet Rating) and HF Sinclair (NYSE:DINOGet Rating) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Plains All American Pipeline 0.65% 9.80% 3.19%
HF Sinclair 2.55% 7.42% 3.64%

Risk & Volatility

Plains All American Pipeline has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, HF Sinclair has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Plains All American Pipeline and HF Sinclair, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plains All American Pipeline 1 2 10 0 2.69
HF Sinclair 0 1 6 0 2.86

Plains All American Pipeline currently has a consensus target price of $13.68, suggesting a potential upside of 19.18%. HF Sinclair has a consensus target price of $54.00, suggesting a potential upside of 8.32%. Given Plains All American Pipeline’s higher probable upside, analysts plainly believe Plains All American Pipeline is more favorable than HF Sinclair.

Institutional & Insider Ownership

45.6% of Plains All American Pipeline shares are owned by institutional investors. Comparatively, 88.2% of HF Sinclair shares are owned by institutional investors. 0.7% of Plains All American Pipeline shares are owned by company insiders. Comparatively, 0.4% of HF Sinclair shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Plains All American Pipeline and HF Sinclair’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Plains All American Pipeline $42.04 billion 0.19 $593.00 million $0.23 49.91
HF Sinclair $18.39 billion 0.61 $558.32 million $3.40 14.66

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

Dividends

Plains All American Pipeline pays an annual dividend of $0.87 per share and has a dividend yield of 7.6%. HF Sinclair pays an annual dividend of $1.60 per share and has a dividend yield of 3.2%. Plains All American Pipeline pays out 378.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HF Sinclair pays out 47.1% of its earnings in the form of a dividend.

Summary

Plains All American Pipeline beats HF Sinclair on 9 of the 16 factors compared between the two stocks.

Plains All American Pipeline Company Profile (Get Rating)

Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates in two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, and at times on barges or railcars. This segment provides terminalling, storage, and other facilities-related services, as well as merchant activities. As of December 31, 2021, this segment owned and leased 18,300 miles of active crude oil transportation pipelines and gathering systems, as well as an additional 110 miles of pipelines that supports crude oil storage and terminalling facilities; 74 million barrels of commercial crude oil storage capacity; 38 million barrels of active, above-ground tank capacity; four marine facilities; a condensate processing facility; seven crude oil rail terminals and 2,100 crude oil railcars; and 640 trucks and 1,275 trailers. The Natural Gas Liquids segment engages in the natural gas processing, NGL fractionation, storage, transportation, and terminalling activities. As of December 31, 2021, this segment owned and operated four natural gas processing plants; nine fractionation plants; 28 million barrels of NGL storage capacity; approximately 1,620 miles of active NGL transportation pipelines, as well as an additional 55 miles of pipeline that supports NGL storage facilities; 16 NGL rail terminals and approximately 3,900 NGL rail cars; and approximately 220 trailers. The company was founded in 1981 and is headquartered in Houston, Texas. Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P.

HF Sinclair Company Profile (Get Rating)

HF Sinclair Corporation operates as an independent energy company. It produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. The company also owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states. In addition, it supplies fuels to approximately 1,300 independent Sinclair-branded stations and licenses the use of the Sinclair brand at approximately 300 additional locations, as well as engages in the growing renewables business. Further, the company produces base oils and other specialized lubricants; and provides petroleum product and crude oil transportation, terminalling, storage, and throughput services to the petroleum industry. HF Sinclair Corporation was incorporated in 2021 and is headquartered in Dallas, Texas.

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