Head-To-Head Review: Enbridge (NYSE:ENB) and World Kinect (NYSE:WKC)

World Kinect (NYSE:WKC) and Enbridge (NYSE:ENB) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Earnings & Valuation

This table compares World Kinect and Enbridge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Kinect	$36.92 billion	0.05	-$614.40 million	($3.21)	-11.10
Enbridge	$83.49 billion	1.29	$5.36 billion	$1.87	25.79

Enbridge has higher revenue and earnings than World Kinect. World Kinect is trading at a lower price-to-earnings ratio than Enbridge, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for World Kinect and Enbridge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Kinect	2	0	0	1	2.00
Enbridge	0	4	8	1	2.77

World Kinect presently has a consensus price target of $30.00, suggesting a potential downside of 15.78%. Enbridge has a consensus price target of $71.17, suggesting a potential upside of 47.59%. Given Enbridge’s stronger consensus rating and higher possible upside, analysts plainly believe Enbridge is more favorable than World Kinect.

Dividends

World Kinect pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Enbridge pays an annual dividend of $2.75 per share and has a dividend yield of 5.7%. World Kinect pays out -28.7% of its earnings in the form of a dividend. Enbridge pays out 147.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. World Kinect has increased its dividend for 6 consecutive years and Enbridge has increased its dividend for 2 consecutive years.

Risk & Volatility

World Kinect has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Enbridge has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Insider & Institutional Ownership

97.1% of World Kinect shares are owned by institutional investors. Comparatively, 54.6% of Enbridge shares are owned by institutional investors. 3.8% of World Kinect shares are owned by company insiders. Comparatively, 0.4% of Enbridge shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares World Kinect and Enbridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
World Kinect	-0.43%	11.24%	2.40%
Enbridge	7.20%	11.17%	3.02%

Summary

Enbridge beats World Kinect on 11 of the 17 factors compared between the two stocks.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.

About Enbridge

Enbridge Inc., together with its subsidiaries, operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, waste heat recovery, and transmission assets in North America. The Energy Services segment provides physical commodity marketing and logistical services to refiners, producers, and other customers in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.