Enbridge vs Pembina Pipeline Which Is More Lucrative?

Enbridge and Pembina Pipeline are two prominent companies in the energy infrastructure sector, both operating in Canada and the United States. Enbridge is one of the largest energy transportation and distribution companies in North America, while Pembina Pipeline specializes in the transportation and midstream services for crude oil, natural gas, and natural gas liquids. Investors often compare the performance of these two stocks due to their competitive positions in the industry and potential for growth.

Enbridge or Pembina Pipeline?

When comparing Enbridge and Pembina Pipeline, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Enbridge and Pembina Pipeline.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Enbridge has a dividend yield of 6.93%, while Pembina Pipeline has a dividend yield of 5.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Enbridge reports a 5-year dividend growth of 4.74% year and a payout ratio of 122.28%. On the other hand, Pembina Pipeline reports a 5-year dividend growth of 3.78% year and a payout ratio of 83.57%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Enbridge P/E ratio at 19.47 and Pembina Pipeline's P/E ratio at 15.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Enbridge P/B ratio is 1.97 while Pembina Pipeline's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Enbridge has seen a 5-year revenue growth of -0.21%, while Pembina Pipeline's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enbridge's ROE at 10.30% and Pembina Pipeline's ROE at 12.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $41.74 for Enbridge and $38.06 for Pembina Pipeline. Over the past year, Enbridge's prices ranged from $32.85 to $44.14, with a yearly change of 34.37%. Pembina Pipeline's prices fluctuated between $32.80 and $43.44, with a yearly change of 32.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.