Energy Transfer Equity, L.P. (NYSE: ETE) and TC Pipelines, (NASDAQ:TCLP) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Energy Transfer Equity, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 6.8%. TC Pipelines, does not pay a dividend. Energy Transfer Equity, L.P. pays out 144.3% 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 Equity, L.P. has increased its dividend for 4 consecutive years.
This is a breakdown of recent ratings and target prices for Energy Transfer Equity, L.P. and TC Pipelines,, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy Transfer Equity, L.P.||0||4||10||0||2.71|
Energy Transfer Equity, L.P. presently has a consensus target price of $20.62, indicating a potential upside of 23.67%. Given Energy Transfer Equity, L.P.’s higher possible upside, equities research analysts plainly believe Energy Transfer Equity, L.P. is more favorable than TC Pipelines,.
Valuation and Earnings
This table compares Energy Transfer Equity, L.P. and TC Pipelines,’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Energy Transfer Equity, L.P.||$42.15 billion||0.43||$5.53 billion||$0.79||21.10|
Energy Transfer Equity, L.P. has higher revenue and earnings than TC Pipelines,.
This table compares Energy Transfer Equity, L.P. and TC Pipelines,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy Transfer Equity, L.P.||2.18%||3.79%||1.14%|
Institutional and Insider Ownership
50.3% of Energy Transfer Equity, L.P. shares are owned by institutional investors. 3.3% of Energy Transfer Equity, L.P. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Energy Transfer Equity, L.P. beats TC Pipelines, on 7 of the 11 factors compared between the two stocks.
About Energy Transfer Equity, L.P.
Energy Transfer Equity, L.P. (ETE) owns equity interests in Energy Transfer Partners, L.P. (ETP) and Sunoco LP, which are engaged in diversified energy-related services. The Company’s segments include Investment in ETP, including the consolidated operations of ETP; Investment in Sunoco LP, including the consolidated operations of Sunoco LP; Investment in Lake Charles LNG, including the operations of Lake Charles LNG, and Corporate and Other. Its Investment in ETP segment includes the ETP’s operations, which include intrastate transportation and storage operations; interstate transportation and storage operations; midstream operations; liquids transportation and services operations; ETP’s Investment in Sunoco Logistics; Retail Marketing operations, and ETP’s other operations and Investments. The Investment in Sunoco LP segment includes wholesale operations and retail operations. Lake Charles LNG owns a LNG import terminal and regasification facility located on Louisiana’s Gulf Coast.
About TC Pipelines,
TC PipeLines, LP is a master limited partnership. The Company acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company’s pipeline systems transport natural gas in the United States. As of December 31, 2016, the Company had four pipelines and equity ownership interests in three natural gas interstate pipeline systems that are collectively designed to transport approximately 9.1 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern and Eastern United States. The Company’s pipeline systems include Gas Transmission Northwest LLC (GTN), Bison Pipeline LLC (Bison), North Baja Pipeline, LLC (North Baja), Tuscarora Gas Transmission Company (Tuscarora), Northern Border Pipeline Company (Northern Border), Portland Natural Gas Transmission System (PNGTS), and Great Lakes Gas Transmission Limited Partnership (Great Lakes).
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