TransCanada Corporation (NYSE: TRP) and Blueknight Energy Partners L.P., L.L.C. (NASDAQ:BKEP) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares TransCanada Corporation 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
TransCanada Corporation 8.16% 12.08% 3.04%
Blueknight Energy Partners L.P., L.L.C. 12.71% -12.45% 7.23%

Institutional & Insider Ownership

56.8% of TransCanada Corporation shares are held by institutional investors. Comparatively, 57.5% of Blueknight Energy Partners L.P., L.L.C. shares are held by institutional investors. 1.7% of Blueknight Energy Partners L.P., L.L.C. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TransCanada Corporation and Blueknight Energy Partners L.P., L.L.C.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TransCanada Corporation $11.40 billion 3.78 $5.38 billion $0.86 57.48
Blueknight Energy Partners L.P., L.L.C. $183.18 million 1.19 $65.50 million ($0.13) -43.85

TransCanada Corporation 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 TransCanada Corporation, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

TransCanada Corporation has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Blueknight Energy Partners L.P., L.L.C. has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Dividends

TransCanada Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 4.0%. Blueknight Energy Partners L.P., L.L.C. pays an annual dividend of $0.58 per share and has a dividend yield of 10.2%. TransCanada Corporation pays out 232.6% 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. Blueknight Energy Partners L.P., L.L.C. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for TransCanada Corporation and Blueknight Energy Partners L.P., L.L.C., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransCanada Corporation 0 1 8 0 2.89
Blueknight Energy Partners L.P., L.L.C. 0 0 1 0 3.00

TransCanada Corporation presently has a consensus target price of $66.29, indicating a potential upside of 34.10%. Blueknight Energy Partners L.P., L.L.C. has a consensus target price of $7.20, indicating a potential upside of 26.32%. Given TransCanada Corporation’s higher possible upside, equities analysts plainly believe TransCanada Corporation is more favorable than Blueknight Energy Partners L.P., L.L.C..

Summary

Blueknight Energy Partners L.P., L.L.C. beats TransCanada Corporation on 8 of the 15 factors compared between the two stocks.

TransCanada Corporation Company Profile

TransCanada Corporation is an energy infrastructure company. The Company is engaged in the development and operation of North American energy infrastructure, including natural gas and liquids pipelines, power generation and natural gas storage facilities. Its segments include Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines and Energy. The Company operates in three businesses: Natural Gas Pipelines, Liquids Pipelines and Energy. The Natural Gas Pipelines and Liquids Pipelines segments principally consist of its respective natural gas and liquids pipelines in Canada, the United States and Mexico, as well as its regulated natural gas storage operations in the United States. The Energy segment includes its power operations and the non-regulated natural gas storage business in Canada. TransCanada PipeLines Limited (TCPL) is its principal operating subsidiary.

Blueknight Energy Partners L.P., L.L.C. Company Profile

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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