Energy Transfer LP (ET) vs TC Energy Corporation (TRP)

Energy Transfer LP and TC Energy Corporation are both Oil & Gas Midstream companies. Energy Transfer LP and TC Energy Corporation are of similar size ($66.1B and $65.2B). Energy Transfer LP trades at the lower P/E: 12.6× against 26.0×. Energy Transfer LP grew revenue faster over the last twelve months: 56.1% against 24.0%. TC Energy Corporation has the higher net margin (22.2% vs 4.20%) and the lower return on invested capital (5.39% vs 6.07%). Both pay a dividend; Energy Transfer LP yields more (8.78% vs 3.99%). Across the 23 metrics below, Energy Transfer LP leads on 19 and TC Energy Corporation on 4.

Valuation

Metric ET TRP Oil & Gas Midstream median
P/E 12.64 26.02 11.68
P/S 0.53 5.76 2.39
P/B 1.40 2.57 1.68
Price to free cash flow 9.91 22.32 8.52
EV/EBITDA 7.95 13.36 9.03
EV/Sales 1.08 9.63 3.43
Earnings yield 7.91% 3.84% 7.78%
Free cash flow yield 10.09% 4.48% 7.11%

Profitability

Metric ET TRP Oil & Gas Midstream median
Gross margin 21.28% 70.44% 54.87%
Operating margin 9.17% 53.94% 34.73%
Net margin 4.20% 22.19% 20.12%
Free cash flow margin 10.90% 25.80% 14.43%
Return on equity 11.73% 9.94% 11.73%
Return on assets 3.75% 2.89% 4.43%
Return on invested capital 6.07% 5.39% 6.10%

Growth

Metric ET TRP Oil & Gas Midstream median
Revenue growth (TTM) 56.13% 24.04% 14.88%
EPS growth (last fiscal year) (5.47%) (27.55%) (7.78%)
Revenue growth, 5-year CAGR 17.04% 2.36% 10.05%
Net income growth, 5-year CAGR 0.00% (6.06%) 0.00%

Health

Metric ET TRP Oil & Gas Midstream median
Debt to equity 1.39 1.68 0.77
Current ratio 1.16 0.61 1.19
Net debt to EBITDA 4.56 5.43 3.46

Dividend

Metric ET TRP Oil & Gas Midstream median
Dividend yield 8.78% 3.99% 4.94%
Payout ratio 1.11 1.04 0.73

Size

Metric ET TRP Oil & Gas Midstream median
Market cap 66.08b 65.20b 3.56b

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