Critical Review: Energy Transfer Partners (ETP) versus Enbridge (ENB)
Energy Transfer Partners (NYSE: ETP) and Enbridge (NYSE:ENB) are both large-cap oil & gas transportation services – nec companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Risk & Volatility
Energy Transfer Partners has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Enbridge has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Energy Transfer Partners and Enbridge, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy Transfer Partners||0||3||12||0||2.80|
Energy Transfer Partners presently has a consensus price target of $26.31, suggesting a potential upside of 53.04%. Enbridge has a consensus price target of $52.33, suggesting a potential upside of 42.13%. Given Energy Transfer Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Energy Transfer Partners is more favorable than Enbridge.
Valuation and Earnings
This table compares Energy Transfer Partners and Enbridge’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Energy Transfer Partners||$9.15 billion||2.07||$705.00 million||$0.44||39.07|
|Enbridge||$25.89 billion||2.35||$1.56 billion||$1.59||23.16|
Enbridge has higher revenue and earnings than Energy Transfer Partners. Enbridge is trading at a lower price-to-earnings ratio than Energy Transfer Partners, indicating that it is currently the more affordable of the two stocks.
Energy Transfer Partners pays an annual dividend of $2.20 per share and has a dividend yield of 12.8%. Enbridge pays an annual dividend of $1.97 per share and has a dividend yield of 5.4%. Energy Transfer Partners pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enbridge pays out 123.9% 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 Partners has increased its dividend for 4 consecutive years and Enbridge has increased its dividend for 5 consecutive years.
Institutional and Insider Ownership
58.4% of Energy Transfer Partners shares are owned by institutional investors. Comparatively, 61.5% of Enbridge shares are owned by institutional investors. 3.7% of Energy Transfer Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Energy Transfer Partners and Enbridge’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy Transfer Partners||4.44%||-0.97%||2.49%|
Enbridge beats Energy Transfer Partners on 9 of the 17 factors compared between the two stocks.
Energy Transfer Partners Company Profile
Energy Transfer Partners, L.P., formerly Sunoco Logistics Partners L.P., owns and operates a logistics business. The Company is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids (NGLs). The Company’s segments include Crude Oil, Natural Gas Liquids and Refined Products. In addition to logistics services, it also owns acquisition and marketing assets. The Crude Oil segment provides transportation, terminaling and acquisition and marketing services to crude oil markets throughout the southwest, midwest and northeastern United States. The Natural Gas Liquids segment transports, stores, and executes acquisition and marketing activities utilizing a network of pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple NGL markets. The Refined Products segment provides transportation and terminaling services, using refined products pipelines and refined products marketing terminals.
Enbridge Company Profile
Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.
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