TransCanada Corporation (TRP) and Genesis Energy, L.P. (GEL) Head to Head Survey
Genesis Energy, L.P. (NYSE: GEL) and TransCanada Corporation (NYSE:TRP) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Risk and Volatility
Genesis Energy, L.P. has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, TransCanada Corporation has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Institutional and Insider Ownership
74.5% of Genesis Energy, L.P. shares are owned by institutional investors. Comparatively, 56.8% of TransCanada Corporation shares are owned by institutional investors. 0.7% of Genesis Energy, L.P. shares are owned 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.
This is a breakdown of current recommendations and price targets for Genesis Energy, L.P. and TransCanada Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Genesis Energy, L.P.||0||6||4||0||2.40|
Genesis Energy, L.P. presently has a consensus price target of $34.11, suggesting a potential upside of 41.01%. TransCanada Corporation has a consensus price target of $66.29, suggesting a potential upside of 32.17%. Given Genesis Energy, L.P.’s higher probable upside, equities analysts plainly believe Genesis Energy, L.P. is more favorable than TransCanada Corporation.
Valuation & Earnings
This table compares Genesis Energy, L.P. and TransCanada Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Genesis Energy, L.P.||$1.71 billion||1.73||$416.75 million||$0.98||24.68|
|TransCanada Corporation||$11.40 billion||3.83||$5.38 billion||$0.86||58.31|
TransCanada Corporation has higher revenue and earnings than Genesis Energy, L.P.. Genesis Energy, L.P. is trading at a lower price-to-earnings ratio than TransCanada Corporation, indicating that it is currently the more affordable of the two stocks.
Genesis Energy, L.P. pays an annual dividend of $2.89 per share and has a dividend yield of 11.9%. TransCanada Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 4.0%. Genesis Energy, L.P. pays out 294.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. TransCanada Corporation has increased its dividend for 12 consecutive years.
This table compares Genesis Energy, L.P. and TransCanada Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Genesis Energy, L.P.||6.73%||5.32%||2.03%|
TransCanada Corporation beats Genesis Energy, L.P. on 11 of the 17 factors compared between the two stocks.
Genesis Energy, L.P. Company Profile
Genesis Energy L.P. is a limited partnership focused on the midstream segment of the oil and gas industry. The Company operates through four segments: Offshore Pipeline Transportation, Refinery Services, Marine Transportation, and Supply and Logistics. The Offshore Pipeline Transportation segment is engaged in the offshore transportation of crude oil and natural gas in the Gulf of Mexico. The Refinery Services segment is involved in the processing of high sulfur (or sour) gas streams as part of refining operations to remove the sulfur and selling the related by-product, sodium hydrosulfide (NaHS). The Marine Transportation segment provides waterborne transportation of petroleum products and crude oil throughout North America. The Supply and Logistics segment is engaged in terminaling, blending, storing, marketing, and transporting crude oil and petroleum products (fuel oil, asphalt and other heavy refined products) and carbon dioxide.
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.
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