Pembina Pipeline vs Enbridge Which Is More Reliable?

Pembina Pipeline and Enbridge are both prominent players in the energy industry, with a focus on transportation and distribution of oil and natural gas. Both companies operate extensive energy infrastructure networks across North America, making them essential components of the energy supply chain. Investors often compare Pembina Pipeline and Enbridge stocks due to their similar business models and market positions. Understanding the key differences and similarities between these two companies can help investors make informed decisions about where to allocate their capital in the energy sector.

Pembina Pipeline or Enbridge?

When comparing Pembina Pipeline and Enbridge, 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 Pembina Pipeline and Enbridge.

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. Pembina Pipeline has a dividend yield of 4.35%, while Enbridge has a dividend yield of 6.77%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Pembina Pipeline reports a 5-year dividend growth of 3.82% year and a payout ratio of 83.21%. On the other hand, Enbridge reports a 5-year dividend growth of 4.74% year and a payout ratio of 119.35%.

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 Pembina Pipeline P/E ratio at 17.12 and Enbridge's P/E ratio at 12.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Pembina Pipeline P/B ratio is 1.94 while Enbridge's P/B ratio is 1.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Pembina Pipeline has seen a 5-year revenue growth of 0.14%, while Enbridge's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Pembina Pipeline's ROE at 12.10% and Enbridge's ROE at 11.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $40.92 for Pembina Pipeline and $42.33 for Enbridge. Over the past year, Pembina Pipeline's prices ranged from $31.52 to $43.44, with a yearly change of 37.82%. Enbridge's prices fluctuated between $32.76 and $42.89, with a yearly change of 30.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.