TC Energy (TRP) versus Its Competitors Head-To-Head Review

TC Energy (NYSE:TRP) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its competitors? We will compare TC Energy to similar businesses based on the strength of its dividends, profitability, analyst recommendations, earnings, institutional ownership, valuation and risk.

Earnings & Valuation

This table compares TC Energy and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TC Energy	$10.91 billion	$2.52 billion	23.99
TC Energy Competitors	$10.92 billion	$5.51 billion	-0.99

TC Energy’s competitors have higher revenue and earnings than TC Energy. TC Energy 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.

Insider and Institutional Ownership

83.1% of TC Energy shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares TC Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TC Energy	25.05%	11.67%	3.36%
TC Energy Competitors	-455.75%	19.43%	6.71%

Risk & Volatility

TC Energy has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, TC Energy’s competitors have a beta of -3.75, indicating that their average stock price is 475% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for TC Energy and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TC Energy	0	3	12	1	2.88
TC Energy Competitors	5999	27057	40958	2431	2.52

TC Energy presently has a consensus price target of $93.75, suggesting a potential upside of 45.28%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 26.88%. Given TC Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe TC Energy is more favorable than its competitors.

Dividends

TC Energy pays an annual dividend of $2.53 per share and has a dividend yield of 3.9%. TC Energy pays out 94.1% 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 & Consumable Fuels” companies pay a dividend yield of 9.0% and pay out -134.4% of their earnings in the form of a dividend. TC Energy has raised its dividend for 1 consecutive years. TC Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

TC Energy beats its competitors on 8 of the 15 factors compared.

About TC Energy

TC Energy (NYSE: TRP) is a North American energy infrastructure company that develops and operates natural gas and liquids pipelines, natural gas storage facilities, and power-generation assets. Its services help transport and store energy for producers, utilities, businesses, and consumers. The company’s pipeline network spans Canada, the United States, and Mexico. Its power-generation portfolio includes an interest in Bruce Power, which operates a nuclear generating station in Ontario. Founded as TransCanada Corporation, the company adopted the TC Energy name in 2019.