Analyzing TC PipeLines, (TCP) & Energy Transfer Equity, L.P. (ETE)
TC PipeLines, (NYSE: TCP) and Energy Transfer Equity, L.P. (NYSE:ETE) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Volatility and Risk
TC PipeLines, has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Energy Transfer Equity, L.P. has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
This table compares TC PipeLines, and Energy Transfer Equity, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy Transfer Equity, L.P.||2.18%||3.79%||1.14%|
This is a summary of recent ratings and recommmendations for TC PipeLines, and Energy Transfer Equity, L.P., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy Transfer Equity, L.P.||0||4||10||0||2.71|
TC PipeLines, currently has a consensus price target of $62.75, indicating a potential upside of 23.65%. Energy Transfer Equity, L.P. has a consensus price target of $20.50, indicating a potential upside of 18.29%. Given TC PipeLines,’s higher probable upside, research analysts clearly believe TC PipeLines, is more favorable than Energy Transfer Equity, L.P..
Earnings and Valuation
This table compares TC PipeLines, and Energy Transfer Equity, L.P.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TC PipeLines,||$481.00 million||7.32||$399.00 million||$3.13||16.21|
|Energy Transfer Equity, L.P.||$42.15 billion||0.44||$5.53 billion||$0.79||21.94|
Energy Transfer Equity, L.P. has higher revenue and earnings than TC PipeLines,. TC PipeLines, is trading at a lower price-to-earnings ratio than Energy Transfer Equity, L.P., indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
60.6% of TC PipeLines, shares are held by institutional investors. Comparatively, 48.4% of Energy Transfer Equity, L.P. shares are held by institutional investors. 0.1% of TC PipeLines, shares are held by company insiders. Comparatively, 3.3% of Energy Transfer Equity, L.P. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
TC PipeLines, pays an annual dividend of $4.00 per share and has a dividend yield of 7.9%. Energy Transfer Equity, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 6.6%. TC PipeLines, pays out 127.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Transfer Equity, L.P. pays out 144.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TC PipeLines, has increased its dividend for 4 consecutive years and Energy Transfer Equity, L.P. has increased its dividend for 7 consecutive years. TC PipeLines, is clearly the better dividend stock, given its higher yield and lower payout ratio.
TC PipeLines, beats Energy Transfer Equity, L.P. on 9 of the 17 factors compared between the two stocks.
About TC PipeLines,
TC PipeLines, LP is a master limited partnership. The Company acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company’s pipeline systems transport natural gas in the United States. As of December 31, 2016, the Company had four pipelines and equity ownership interests in three natural gas interstate pipeline systems that are collectively designed to transport approximately 9.1 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern and Eastern United States. The Company’s pipeline systems include Gas Transmission Northwest LLC (GTN), Bison Pipeline LLC (Bison), North Baja Pipeline, LLC (North Baja), Tuscarora Gas Transmission Company (Tuscarora), Northern Border Pipeline Company (Northern Border), Portland Natural Gas Transmission System (PNGTS), and Great Lakes Gas Transmission Limited Partnership (Great Lakes).
About Energy Transfer Equity, L.P.
Energy Transfer Equity, L.P. (ETE) owns equity interests in Energy Transfer Partners, L.P. (ETP) and Sunoco LP, which are engaged in diversified energy-related services. The Company’s segments include Investment in ETP, including the consolidated operations of ETP; Investment in Sunoco LP, including the consolidated operations of Sunoco LP; Investment in Lake Charles LNG, including the operations of Lake Charles LNG, and Corporate and Other. Its Investment in ETP segment includes the ETP’s operations, which include intrastate transportation and storage operations; interstate transportation and storage operations; midstream operations; liquids transportation and services operations; ETP’s Investment in Sunoco Logistics; Retail Marketing operations, and ETP’s other operations and Investments. The Investment in Sunoco LP segment includes wholesale operations and retail operations. Lake Charles LNG owns a LNG import terminal and regasification facility located on Louisiana’s Gulf Coast.
Receive News & Ratings for TC PipeLines LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TC PipeLines LP and related companies with MarketBeat.com's FREE daily email newsletter.