Enterprise Products Partners L.P. (EPD) vs TC Energy Corporation (TRP)

Enterprise Products Partners L.P. and TC Energy Corporation are both Oil & Gas Midstream companies. Enterprise Products Partners L.P. is the larger, with a market value of $80.5B against $59.7B — 1.3× the size. Enterprise Products Partners L.P. trades at the lower P/E: 12.8× against 24.4×. TC Energy Corporation grew revenue faster over the last twelve months: 24.0% against 6.78%. TC Energy Corporation has the higher net margin (22.2% vs 10.7%) and the lower return on invested capital (5.39% vs 7.68%). Both pay a dividend; Enterprise Products Partners L.P. yields more (8.06% vs 7.37%). Across the 23 metrics below, Enterprise Products Partners L.P. leads on 17 and TC Energy Corporation on 6.

Valuation

Metric EPD TRP Oil & Gas Midstream median
P/E 12.76 24.39 13.19
P/S 1.36 5.40 2.60
P/B 2.56 2.41 2.08
Price to free cash flow 19.27 20.92 10.14
EV/EBITDA 10.58 12.86 8.11
EV/Sales 1.92 9.27 3.89
Earnings yield 7.84% 4.10% 6.83%
Free cash flow yield 5.19% 4.78% 6.94%

Profitability

Metric EPD TRP Oil & Gas Midstream median
Gross margin 13.25% 70.44% 58.81%
Operating margin 13.43% 53.94% 32.14%
Net margin 10.68% 22.19% 21.16%
Free cash flow margin 7.06% 25.80% 10.15%
Return on equity 20.48% 9.94% 11.30%
Return on assets 7.84% 2.89% 5.00%
Return on invested capital 7.68% 5.39% 6.13%

Growth

Metric EPD TRP Oil & Gas Midstream median
Revenue growth (TTM) 6.78% 24.04% 15.44%
EPS growth (last fiscal year) (1.12%) (27.55%) —
Revenue growth, 5-year CAGR 14.10% 2.36% 8.96%
Net income growth, 5-year CAGR 8.80% (6.06%) 0.00%

Health

Metric EPD TRP Oil & Gas Midstream median
Debt to equity 1.07 1.68 0.78
Current ratio 0.93 0.61 1.19
Net debt to EBITDA 3.35 5.43 3.42

Dividend

Metric EPD TRP Oil & Gas Midstream median
Dividend yield 8.06% 7.37% 7.29%
Payout ratio — 4.07 0.64

Size

Metric EPD TRP Oil & Gas Midstream median
Market cap 80.48b 59.65b 3.61b

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