Head to Head Survey: TC Energy (NYSE:TRP) & GE Vernova (NYSE:GEV)

GE Vernova (NYSE:GEV) and TC Energy (NYSE:TRP) are both large-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider & Institutional Ownership

83.1% of TC Energy shares are owned by institutional investors. 0.2% of GE Vernova shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for GE Vernova and TC Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Vernova	1	5	22	2	2.83
TC Energy	0	6	7	1	2.64

GE Vernova currently has a consensus price target of $1,133.15, indicating a potential upside of 12.34%. TC Energy has a consensus price target of $89.00, indicating a potential upside of 35.22%. Given TC Energy’s higher probable upside, analysts plainly believe TC Energy is more favorable than GE Vernova.

Profitability

This table compares GE Vernova and TC Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE Vernova	23.03%	42.42%	7.78%
TC Energy	22.91%	11.10%	3.21%

Volatility and Risk

GE Vernova has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, TC Energy has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Dividends

GE Vernova pays an annual dividend of $2.00 per share and has a dividend yield of 0.2%. TC Energy pays an annual dividend of $2.47 per share and has a dividend yield of 3.8%. GE Vernova pays out 5.7% of its earnings in the form of a dividend. TC Energy pays out 102.5% 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 Energy has raised its dividend for 1 consecutive years. TC Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares GE Vernova and TC Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Vernova	$38.07 billion	7.06	$4.88 billion	$34.94	28.87
TC Energy	$10.91 billion	6.29	$2.52 billion	$2.41	27.31

GE Vernova has higher revenue and earnings than TC Energy. TC Energy is trading at a lower price-to-earnings ratio than GE Vernova, indicating that it is currently the more affordable of the two stocks.

Summary

GE Vernova beats TC Energy on 14 of the 18 factors compared between the two stocks.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.

About TC Energy

TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,600 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet. In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, Texas, and the United States Gulf Coast. Further, the company owns or has interests in power generation facilities with approximately 4,600 megawatts; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage facilities in in Alberta, Ontario, Québec, and New Brunswick. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.