TransCanada Corporation (NYSE: TRP) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it weigh in compared to its rivals? We will compare TransCanada Corporation to similar companies based on the strength of its risk, profitability, institutional ownership, valuation, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

56.8% of TransCanada Corporation shares are held by institutional investors. Comparatively, 57.2% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.3% of shares of all “Oil & Gas Transportation Services” companies are held by 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.

Earnings & Valuation

This table compares TransCanada Corporation and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TransCanada Corporation $11.07 billion $5.23 billion 59.63
TransCanada Corporation Competitors $5.63 billion $1.30 billion 37.76

TransCanada Corporation has higher revenue and earnings than its rivals. TransCanada Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

TransCanada Corporation pays an annual dividend of $1.85 per share and has a dividend yield of 3.6%. TransCanada Corporation pays out 215.1% 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 6.5% and pay out 171.6% of their earnings in the form of a dividend. TransCanada Corporation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares TransCanada Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransCanada Corporation 8.16% 12.08% 3.04%
TransCanada Corporation Competitors 16.87% 14.36% 5.47%

Analyst Ratings

This is a breakdown of recent ratings and target prices for TransCanada Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransCanada Corporation 0 0 8 0 3.00
TransCanada Corporation Competitors 380 2065 2469 109 2.46

TransCanada Corporation currently has a consensus target price of $68.50, suggesting a potential upside of 33.58%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 18.51%. Given TransCanada Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe TransCanada Corporation is more favorable than its rivals.

Risk & Volatility

TransCanada Corporation has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, TransCanada Corporation’s rivals have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Summary

TransCanada Corporation rivals beat TransCanada Corporation on 10 of the 15 factors compared.

About TransCanada Corporation

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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