Critical Contrast: Pembina Pipeline (NYSE:PBA) versus Stabilis Solutions (NASDAQ:SLNG)

Stabilis Solutions (NASDAQ:SLNG) and Pembina Pipeline (NYSE:PBA) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for Stabilis Solutions and Pembina Pipeline, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stabilis Solutions	1	1	0	0	1.50
Pembina Pipeline	0	5	5	0	2.50

Pembina Pipeline has a consensus price target of $64.00, suggesting a potential upside of 27.21%. Given Pembina Pipeline’s stronger consensus rating and higher possible upside, analysts clearly believe Pembina Pipeline is more favorable than Stabilis Solutions.

Valuation & Earnings

This table compares Stabilis Solutions 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
Stabilis Solutions	$68.25 million	1.22	-$1.35 million	($0.42)	-10.62
Pembina Pipeline	$5.57 billion	5.26	$1.21 billion	$2.04	24.66

Pembina Pipeline has higher revenue and earnings than Stabilis Solutions. Stabilis Solutions is trading at a lower price-to-earnings ratio than Pembina Pipeline, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Stabilis Solutions has a beta of -0.24, suggesting that its stock price is 124% less volatile than the S&P 500. Comparatively, Pembina Pipeline has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stabilis Solutions	-14.06%	-12.33%	-8.17%
Pembina Pipeline	22.41%	11.41%	4.82%

Institutional & Insider Ownership

3.8% of Stabilis Solutions shares are owned by institutional investors. Comparatively, 55.4% of Pembina Pipeline shares are owned by institutional investors. 72.2% of Stabilis Solutions shares are owned by company insiders. Comparatively, 0.1% of Pembina Pipeline shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Pembina Pipeline beats Stabilis Solutions on 13 of the 14 factors compared between the two stocks.

About Stabilis Solutions

Stabilis Solutions, Inc., together with its subsidiaries, an energy transition company, provides clean energy production, storage, transportation, and fueling solutions primarily using liquefied natural gas (LNG) to various end markets in North America. The company offers LNG solutions to customers in aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets. It also provides engineering and field support services, as well as rents cryogenic equipment. The company was founded in 2013 and is headquartered in Houston, Texas. Stabilis Solutions, Inc. is a subsidiary of LNG Investment Company LLC.

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.