Pembina Pipeline (PBA) & INPEX CORP/ADR (IPXHY) Critical Survey

INPEX CORP/ADR (OTCMKTS:IPXHY) and Pembina Pipeline (NYSE:PBA) are both large-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Risk and Volatility

INPEX CORP/ADR has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Pembina Pipeline has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Insider & Institutional Ownership

51.8% of Pembina Pipeline shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for INPEX CORP/ADR and Pembina Pipeline, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
INPEX CORP/ADR 0 0 0 0 N/A
Pembina Pipeline 0 0 7 0 3.00

Profitability

This table compares INPEX CORP/ADR and Pembina Pipeline’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
INPEX CORP/ADR 4.72% 3.95% 2.92%
Pembina Pipeline 16.90% 10.86% 4.86%

Dividends

INPEX CORP/ADR pays an annual dividend of $0.06 per share and has a dividend yield of 0.6%. Pembina Pipeline pays an annual dividend of $1.71 per share and has a dividend yield of 4.8%. Pembina Pipeline pays out 96.6% 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 increased its dividend for 3 consecutive years. Pembina Pipeline is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares INPEX CORP/ADR and Pembina Pipeline’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
INPEX CORP/ADR $8.43 billion 1.65 $363.25 million N/A N/A
Pembina Pipeline $5.67 billion 3.18 $985.98 million $1.77 20.01

Pembina Pipeline has lower revenue, but higher earnings than INPEX CORP/ADR.

Summary

Pembina Pipeline beats INPEX CORP/ADR on 10 of the 13 factors compared between the two stocks.

INPEX CORP/ADR Company Profile

Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. It is also involved in the investment and lending to the companies engaged in mineral resources business, etc. The company holds interests in approximately 70 projects in approximately 20 countries; and owns a natural gas pipeline network of 1,500 kilometers. As of March 31, 2018, its proved reserves were 2,747 million barrels for crude oil, condensate, and LPG; and 5,976 billion cubic feet for natural gas. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.

Pembina Pipeline Company Profile

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America. It operates through three divisions: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines division operates conventional, transmission, and oil sands and heavy oil pipeline assets with a total capacity of 3 million barrels of oil serving markets and basins across North America through conventional, transmission, and oil sand pipelines assets. The Facilities division offers processing and fraction facilities, and other infrastructure related services to provide customers with natural gas and natural gas liquid services, as well as natural gas liquids fractionation, cavern storage, and loading and off-loading facilities. The Marketing & New Ventures division buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was founded in 1997 and is headquartered in Calgary, Canada.

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