Contrasting Enterprise Products Partners (EPD) and TC PIPELINES LP Common Stock (TRP)
Enterprise Products Partners (NYSE: TRP) and TC PIPELINES LP Common Stock (NYSE:TRP) are both large-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Enterprise Products Partners pays an annual dividend of $1.72 per share and has a dividend yield of 5.9%. TC PIPELINES LP Common Stock pays an annual dividend of $0.21 per share and has a dividend yield of 0.5%. Enterprise Products Partners pays out 130.3% 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 LP Common Stock pays out 8.8% of its earnings in the form of a dividend. Enterprise Products Partners has raised its dividend for 19 consecutive years. Enterprise Products Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current recommendations and price targets for Enterprise Products Partners and TC PIPELINES LP Common Stock, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enterprise Products Partners||0||0||17||0||3.00|
|TC PIPELINES LP Common Stock||0||1||8||0||2.89|
Enterprise Products Partners currently has a consensus price target of $32.33, indicating a potential upside of 10.13%. TC PIPELINES LP Common Stock has a consensus price target of $57.67, indicating a potential upside of 28.78%. Given TC PIPELINES LP Common Stock’s higher probable upside, analysts clearly believe TC PIPELINES LP Common Stock is more favorable than Enterprise Products Partners.
Valuation and Earnings
This table compares Enterprise Products Partners and TC PIPELINES LP Common Stock’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enterprise Products Partners||$29.24 billion||2.17||$2.80 billion||$1.32||22.24|
|TC PIPELINES LP Common Stock||$10.37 billion||3.92||$2.44 billion||$2.38||18.82|
Enterprise Products Partners has higher revenue and earnings than TC PIPELINES LP Common Stock. TC PIPELINES LP Common Stock is trading at a lower price-to-earnings ratio than Enterprise Products Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Enterprise Products Partners and TC PIPELINES LP Common Stock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enterprise Products Partners||8.95%||14.42%||6.00%|
|TC PIPELINES LP Common Stock||23.37%||12.90%||3.45%|
Risk and Volatility
Enterprise Products Partners has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, TC PIPELINES LP Common Stock has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Insider and Institutional Ownership
36.6% of Enterprise Products Partners shares are held by institutional investors. Comparatively, 60.6% of TC PIPELINES LP Common Stock shares are held by institutional investors. 37.5% of Enterprise Products Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Enterprise Products Partners beats TC PIPELINES LP Common Stock on 11 of the 17 factors compared between the two stocks.
Enterprise Products Partners Company Profile
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services, as well as NGL export docks and related services. It operates approximately 19,600 miles of NGL pipelines; NGL and related product storage facilities; 14 NGL fractionators; and a liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,800 miles of crude oil pipelines; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 495 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,700 miles of natural gas pipeline systems to gather and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It leases underground salt dome natural gas storage facilities in Texas and Louisiana; owns an underground salt dome storage cavern in Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related activities, including 800 miles of pipelines; butane isomerization complex, associated deisobutanizer units, and related pipeline assets; and octane enhancement and high purity isobutylene production facilities. It also operates approximately 4,100 miles of refined products pipelines; and terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is headquartered in Houston, Texas.
TC PIPELINES LP Common Stock Company Profile
TransCanada Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Energy segments. The company transports natural gas to local distribution companies, power generation and individual facilities, interconnecting pipelines, and other businesses. It owns and operates a network of 80,800 km of wholly-owned natural gas pipelines and 11,100 km of partially-owned natural gas pipelines; and regulated natural gas storage facilities with a total working gas capacity of 535 Bcf. The company also owns and operates Keystone pipeline system of 4,324 km for the transportation of crude oil from Hardisty, Alberta to Wood River and Patoka in Illinois; Cushing, Oklahoma; and the U.S. Gulf Coast. In addition, it operates terminal and pipeline facilities to transport crude oil from the market hub at Cushing, Oklahoma to the U.S. Gulf Coast refining markets. Further, the company owns, controls, and develops approximately 7,000 MW of generation capacity powered by natural gas, nuclear, and wind assets; and owns and operates regulated and unregulated natural gas storage facilities. It also operates 11 power generation facilities and 118 Bcf of non-regulated natural gas storage facilities in Alberta, Ontario, Québec, and New Brunswick in Canada, as well as in Arizona. TransCanada Corporation was founded in 1951 and is headquartered in Calgary, Canada.
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