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 $32.0B against $1.5B — 21.2× the size. Ecopetrol S.A. trades at the lower P/E: 8.2× against 8.4×. Transportadora De Gas Sa Ord B grew revenue faster over the last twelve months: 4.22% against −76.8%. Transportadora De Gas Sa Ord B has the higher net margin (26.5% vs 11.7%) and the higher return on invested capital (14.4% vs 9.16%). Across the 22 metrics below, Transportadora De Gas Sa Ord B leads on 15 and Ecopetrol S.A. on 7.

Valuation

Metric EC TGS Oil & Gas Integrated median
P/E 8.22 8.41 8.49
P/S 0.99 2.20 1.00
P/B 1.50 1.08 1.34
Price to free cash flow 6.43 23.86 7.90
EV/EBITDA 4.72 3.98 4.07
EV/Sales 1.85 2.06 1.19
Earnings yield 12.17% 11.89% 11.52%
Free cash flow yield 15.55% 4.19% 8.19%

Profitability

Metric EC TGS Oil & Gas Integrated median
Gross margin 36.64% 53.93% 41.32%
Operating margin 27.60% 43.30% 16.71%
Net margin 11.72% 26.47% 9.96%
Free cash flow margin 15.34% 0.00% 11.34%
Return on equity 0.00% 14.86% 14.86%
Return on assets 5.27% 9.08% 6.69%
Return on invested capital 9.16% 14.36% 11.99%

Growth

Metric EC TGS Oil & Gas Integrated median
Revenue growth (TTM) (76.82%) 4.22% 12.44%
EPS growth (last fiscal year) (24.10%) (15.56%) (14.54%)
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 0.96 0.47 0.53
Current ratio 1.51 3.11 1.19
Net debt to EBITDA 2.26 (0.11) 0.80

Dividend

Metric EC TGS Oil & Gas Integrated median
Dividend yield 4.18% — 3.90%
Payout ratio 0.34 — 0.40

Size

Metric EC TGS Oil & Gas Integrated median
Market cap 31.95b 1.51b 45.56b

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