Financial Analysis: Enbridge Energy, L.P. (EEP) vs. Its Competitors
Enbridge Energy, L.P. (NYSE: EEP) is one of 50 public companies in the “Oil & Gas Transportation Services” industry, but how does it compare to its competitors? We will compare Enbridge Energy, L.P. to related companies based on the strength of its risk, profitability, dividends, valuation, earnings, institutional ownership and analyst recommendations.
Risk & Volatility
Enbridge Energy, L.P. has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Enbridge Energy, L.P.’s competitors have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.
This table compares Enbridge Energy, L.P. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enbridge Energy, L.P.||8.47%||6.03%||1.93%|
|Enbridge Energy, L.P. Competitors||18.70%||88.38%||6.00%|
Institutional and Insider Ownership
44.0% of Enbridge Energy, L.P. shares are held by institutional investors. Comparatively, 57.1% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Enbridge Energy, L.P. pays an annual dividend of $1.40 per share and has a dividend yield of 10.1%. Enbridge Energy, L.P. pays out 222.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.8% and pay out 155.5% of their earnings in the form of a dividend. Enbridge Energy, L.P. has raised its dividend for 7 consecutive years.
Earnings and Valuation
This table compares Enbridge Energy, L.P. and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Enbridge Energy, L.P.||$4.48 billion||-$67.70 million||22.11|
|Enbridge Energy, L.P. Competitors||$4.88 billion||$288.25 million||-21.64|
Enbridge Energy, L.P.’s competitors have higher revenue and earnings than Enbridge Energy, L.P.. Enbridge Energy, L.P. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current ratings and recommmendations for Enbridge Energy, L.P. and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enbridge Energy, L.P.||0||8||2||0||2.20|
|Enbridge Energy, L.P. Competitors||306||1823||2407||86||2.49|
Enbridge Energy, L.P. presently has a consensus price target of $19.00, suggesting a potential upside of 36.40%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 26.99%. Given Enbridge Energy, L.P.’s higher probable upside, research analysts clearly believe Enbridge Energy, L.P. is more favorable than its competitors.
Enbridge Energy, L.P. competitors beat Enbridge Energy, L.P. on 12 of the 15 factors compared.
Enbridge Energy, L.P. Company Profile
Enbridge Energy Partners, L.P is a geographically and operationally diversified organization that provides crude oil and liquid petroleum gathering and transportation and storage services. The Company operates through the Liquids business segment. Its Liquids segment includes the operations of its Lakehead, North Dakota and mid-continent systems. The Company’s Lakehead system along with the Enbridge system formed the Mainline system, together formed the liquid petroleum pipeline system, as of December 31, 2016. The Mainline system serves refining centers in the Great Lakes and Midwest regions of the United States and the provinces of Ontario and Quebec, Canada. The Lakehead system is the United States portion of the Mainline system.
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