Excelerate Energy (NYSE:EE) and Energy Transfer (NYSE:ET) Head-To-Head Analysis

Excelerate Energy (NYSE:EE) and Energy Transfer (NYSE:ET) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Excelerate Energy and Energy Transfer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Excelerate Energy	3.23%	2.24%	1.22%
Energy Transfer	4.87%	11.55%	3.69%

Valuation & Earnings

This table compares Excelerate Energy and Energy Transfer”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Excelerate Energy	$1.23 billion	3.69	$39.20 million	$1.45	27.57
Energy Transfer	$107.38 billion	0.69	$4.18 billion	$1.47	14.64

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

Dividends

Excelerate Energy pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Energy Transfer pays an annual dividend of $1.36 per share and has a dividend yield of 6.3%. Excelerate Energy pays out 24.8% of its earnings in the form of a dividend. Energy Transfer pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Excelerate Energy has increased its dividend for 2 consecutive years and Energy Transfer has increased its dividend for 4 consecutive years. Energy Transfer is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Excelerate Energy and Energy Transfer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Excelerate Energy	0	6	5	3	2.79
Energy Transfer	0	2	12	1	2.93

Excelerate Energy presently has a consensus target price of $40.73, suggesting a potential upside of 1.89%. Energy Transfer has a consensus target price of $24.17, suggesting a potential upside of 12.30%. Given Energy Transfer’s stronger consensus rating and higher probable upside, analysts clearly believe Energy Transfer is more favorable than Excelerate Energy.

Insider & Institutional Ownership

21.8% of Excelerate Energy shares are owned by institutional investors. Comparatively, 38.2% of Energy Transfer shares are owned by institutional investors. 2.3% of Excelerate Energy shares are owned by insiders. Comparatively, 3.3% of Energy Transfer shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Excelerate Energy has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Energy Transfer has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Summary

Energy Transfer beats Excelerate Energy on 13 of the 18 factors compared between the two stocks.

About Excelerate Energy

Excelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions worldwide. The company offers regasification services, including floating storage and regasification units (FSRUs), infrastructure development, and LNG and natural gas supply, procurement, and distribution services; LNG terminal services; and natural gas supply to-power projects. Excelerate Energy, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. Excelerate Energy, Inc. is a subsidiary of Excelerate Energy Holdings, LLC.

About Energy Transfer

Energy Transfer LP provides energy-related services. The company owns and operates natural gas transportation pipeline, and natural gas storage facilities in Texas and Oklahoma; and approximately 20,090 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plant, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Arkansas, Kansas, Montana, North Dakota, Wyoming, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; and transports and supplies water to natural gas producer in Pennsylvania. Further, it owns 5,700 miles of natural gas liquid (NGL) pipeline; NGL fractionation facilities; NGL storage facilities; and other NGL storage assets and terminal. Additionally, the company provides crude oil transportation, terminalling, acquisition, and marketing activities; owns and operates approximately 14,500 miles of crude oil trunk and gathering pipelines in the Southwest, Midcontinent, and Midwest United States; and sells and distributes gasoline, middle distillate, and motor fuels and other petroleum products. It also offers natural gas compression services; carbon dioxide and hydrogen sulfide removal services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalty, and generate electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 1996 and is headquartered in Dallas, Texas.