Better Buy: Kinder Morgan, Inc. vs. Plains All American Pipeline, L.P.

Kinder Morgan (NYSE: KMI) and Plains All American Pipeline (NYSE: PAA) have been terrible investments over the past three years, with both having lost more than half of their value over that time frame. Fueling that ferocious sell-off has been the carnage of one of the worst oil market downturns in decades, which has had a negative impact on both companies.

That said, while their abysmal stock performances suggest that earnings plunged, that hasn't been the case. Kinder Morgan's distributable cash flow, for example, is only expected to be about 4% below its 2015 peak next year. Meanwhile, Plains All American Pipeline's earnings are only about 9% below 2013's pinnacle. Because of that, both stocks trade for dirt-cheap valuations these days. However, one is still quite a bit cheaper than the other, which, when combined with other factors, makes it the better buy between the two.

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Source: Fool.com