Ecopetrol S.A. (EC) vs Transportadora De Gas Sa Ord B (TGS)

Ecopetrol S.A. and Transportadora De Gas Sa Ord B are both Oil & Gas Integrated companies. Ecopetrol S.A. is the larger, with a market value of $33.7B against $1.9B — 17.8× the size. Transportadora De Gas Sa Ord B trades at the lower P/E: 12.0× against 13.2×. Transportadora De Gas Sa Ord B grew revenue faster over the last twelve months: 1.59% against −83.7%. Transportadora De Gas Sa Ord B has the higher net margin (24.7% vs 8.76%) and the higher return on invested capital (16.3% vs 8.20%). Across the 22 metrics below, Transportadora De Gas Sa Ord B leads on 17 and Ecopetrol S.A. on 5.

Valuation

Metric EC TGS Oil & Gas Integrated median
P/E 13.19 12.01 11.88
P/S 1.43 2.80 1.20
P/B 1.60 1.59 1.56
Price to free cash flow 7.76 29.17 9.74
EV/EBITDA 6.26 4.94 4.94
EV/Sales 2.24 2.69 1.57
Earnings yield 7.58% 8.32% 7.58%
Free cash flow yield 12.89% 3.43% 6.71%

Profitability

Metric EC TGS Oil & Gas Integrated median
Gross margin 31.44% 54.52% 39.18%
Operating margin 22.29% 42.82% 14.90%
Net margin 8.76% 24.70% 8.76%
Free cash flow margin 18.44% 9.61% 9.61%
Return on equity 2.86% 14.71% 12.22%
Return on assets 1.09% 9.43% 6.47%
Return on invested capital 8.20% 16.27% 10.61%

Growth

Metric EC TGS Oil & Gas Integrated median
Revenue growth (TTM) (83.68%) 1.59% 5.63%
EPS growth (last fiscal year) (24.10%) (15.56%) —
Revenue growth, 5-year CAGR (18.18%) 11.65% 12.04%
Net income growth, 5-year CAGR 0.34% 48.47% 0.00%

Health

Metric EC TGS Oil & Gas Integrated median
Debt to equity 1.02 0.44 0.55
Current ratio 1.55 5.11 1.18
Net debt to EBITDA 2.26 (0.11) 0.80

Dividend

Metric EC TGS Oil & Gas Integrated median
Dividend yield 18.03% — 5.01%
Payout ratio 0.39 0.00 0.29

Size

Metric EC TGS Oil & Gas Integrated median
Market cap 33.65b 1.89b 51.12b

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