TC PipeLines (TCP) versus The Competition Financial Comparison

TC PipeLines (NYSE: TCP) is one of 33 publicly-traded companies in the “Natural gas transmission” industry, but how does it weigh in compared to its rivals? We will compare TC PipeLines to related businesses based on the strength of its profitability, risk, valuation, analyst recommendations, earnings, institutional ownership and dividends.

Volatility & Risk

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TC PipeLines has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, TC PipeLines’ rivals have a beta of 1.54, suggesting that their average share price is 54% more volatile than the S&P 500.

Dividends

TC PipeLines pays an annual dividend of $4.00 per share and has a dividend yield of 12.8%. TC PipeLines pays out 126.6% 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, “Natural gas transmission” companies pay a dividend yield of 7.5% and pay out 131.5% of their earnings in the form of a dividend. TC PipeLines has raised its dividend for 8 consecutive years. TC PipeLines is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares TC PipeLines and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TC PipeLines 62.66% 22.80% 7.23%
TC PipeLines Competitors 19.00% 9.28% 4.77%

Earnings & Valuation

This table compares TC PipeLines and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TC PipeLines $422.00 million $252.00 million 9.88
TC PipeLines Competitors $5.37 billion $750.70 million 35.24

TC PipeLines’ rivals have higher revenue and earnings than TC PipeLines. TC PipeLines is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

66.0% of TC PipeLines shares are held by institutional investors. Comparatively, 54.4% of shares of all “Natural gas transmission” companies are held by institutional investors. 0.1% of TC PipeLines shares are held by insiders. Comparatively, 6.9% of shares of all “Natural gas transmission” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for TC PipeLines and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TC PipeLines 3 4 2 0 1.89
TC PipeLines Competitors 361 1456 2026 73 2.46

TC PipeLines currently has a consensus target price of $48.75, suggesting a potential upside of 56.10%. As a group, “Natural gas transmission” companies have a potential upside of 35.30%. Given TC PipeLines’ higher possible upside, equities analysts clearly believe TC PipeLines is more favorable than its rivals.

Summary

TC PipeLines rivals beat TC PipeLines on 8 of the 15 factors compared.

About TC PipeLines

TC Pipelines LP engages in nautral gas pipelines business. It transports natural gas in Western, Midwestern and Eastern United States. The firm is managed by its general partner TC Pipelines GP, Inc., which is an indirect, wholly-owned subsidiary of TransCanada. The company was founded in 1998 and is headquartered in Houston, TX.

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