Head to Head Analysis: TC Energy (TRP) & Its Rivals

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 rivals? We will compare TC Energy to related companies based on the strength of its earnings, valuation, profitability, risk, dividends, institutional ownership and analyst recommendations.

Institutional & Insider 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

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

Analyst Ratings

This is a summary of current ratings for TC Energy and its rivals, as reported by MarketBeat.com.

	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 target price of $93.75, indicating 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 probable upside, research analysts plainly believe TC Energy is more favorable than its rivals.

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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares TC Energy and its rivals’ 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%

Valuation & Earnings

This table compares TC Energy and its rivals gross revenue, earnings per share 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 rivals have higher revenue and earnings than TC Energy. TC Energy 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.

Summary

TC Energy beats its rivals 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.