Critical Contrast: Plains All American Pipeline, L.P. (PAA) vs. Blueknight Energy Partners L.P., L.L.C. (BKEP)

Plains All American Pipeline, L.P. (NYSE: PAA) and Blueknight Energy Partners L.P., L.L.C. (NASDAQ:BKEP) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Earnings & Valuation

This table compares Plains All American Pipeline, L.P. and Blueknight Energy Partners L.P., L.L.C.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Plains All American Pipeline, L.P. $23.87 billion 0.65 $2.01 billion $1.33 16.11
Blueknight Energy Partners L.P., L.L.C. $183.18 million 1.23 $65.50 million ($0.13) -45.38

Plains All American Pipeline, L.P. has higher revenue and earnings than Blueknight Energy Partners L.P., L.L.C.. Blueknight Energy Partners L.P., L.L.C. is trading at a lower price-to-earnings ratio than Plains All American Pipeline, L.P., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Plains All American Pipeline, L.P. and Blueknight Energy Partners L.P., L.L.C.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Plains All American Pipeline, L.P. 4.42% 10.14% 3.41%
Blueknight Energy Partners L.P., L.L.C. 12.71% -12.45% 7.23%

Volatility & Risk

Plains All American Pipeline, L.P. has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Blueknight Energy Partners L.P., L.L.C. has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Plains All American Pipeline, L.P. and Blueknight Energy Partners L.P., L.L.C., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plains All American Pipeline, L.P. 0 14 9 0 2.39
Blueknight Energy Partners L.P., L.L.C. 0 0 0 0 N/A

Plains All American Pipeline, L.P. presently has a consensus price target of $28.38, indicating a potential upside of 32.50%. Given Plains All American Pipeline, L.P.’s higher possible upside, equities analysts clearly believe Plains All American Pipeline, L.P. is more favorable than Blueknight Energy Partners L.P., L.L.C..

Institutional and Insider Ownership

42.1% of Plains All American Pipeline, L.P. shares are held by institutional investors. Comparatively, 57.5% of Blueknight Energy Partners L.P., L.L.C. shares are held by institutional investors. 1.3% of Plains All American Pipeline, L.P. shares are held by company insiders. Comparatively, 1.7% of Blueknight Energy Partners L.P., L.L.C. shares are held 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.

Dividends

Plains All American Pipeline, L.P. pays an annual dividend of $2.20 per share and has a dividend yield of 10.3%. Blueknight Energy Partners L.P., L.L.C. pays an annual dividend of $0.58 per share and has a dividend yield of 9.8%. Plains All American Pipeline, L.P. pays out 165.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blueknight Energy Partners L.P., L.L.C. pays out -446.2% of its earnings in the form of a dividend.

Summary

Plains All American Pipeline, L.P. beats Blueknight Energy Partners L.P., L.L.C. on 8 of the 14 factors compared between the two stocks.

About Plains All American Pipeline, L.P.

Plains All American Pipeline, L.P. owns and operates midstream energy infrastructure and provide logistics services for crude oil, natural gas liquids (NGL), natural gas and refined products. The Company operates through three segments: Transportation, Facilities, and Supply and Logistics. The Company’s transportation segment operations consist of activities associated with transporting crude oil and NGL on pipelines, gathering systems, trucks and barges. Its Facilities segment operations consist of activities associated with providing storage, terminaling and throughput services for crude oil, refined products, NGL and natural gas, as well as NGL fractionation and isomerization services and natural gas and condensate processing services. Its supply and logistics segment operations consist of the merchant-related activities, including the purchase of the United States and Canadian crude oil at the wellhead, the bulk purchase of crude oil at pipeline, terminal and rail facilities.

About Blueknight Energy Partners L.P., L.L.C.

Blueknight Energy Partners, L.P. is a master limited partnership company. The Company manages its operations through four segments: asphalt terminaling services, crude oil terminaling and storage services, crude oil pipeline services, and crude oil trucking and producer field services. Asphalt terminaling services segment operations generally consist of fee based activities associated with providing storage, terminaling and throughput services for asphalt product and residual fuel oil. Crude oil terminaling and storage segment operations generally consist of fee based activities associated with providing storage, terminaling, and throughput services for crude oil. Crude oil pipeline services segment operations generally consist of fee-based activity associated with transporting crude oil products on pipelines. Crude oil trucking and producer field services segment operations generally consist of fee-based activity associated with transporting crude oil products on trucks.

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