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 is the larger, with a market value of $70.2B against $59.7B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 13.7× against 24.4×. Energy Transfer LP grew revenue faster over the last twelve months: 33.3% against 24.0%. TC Energy Corporation has the higher net margin (22.2% vs 4.70%) and the lower return on invested capital (5.39% vs 5.72%). Both pay a dividend; Energy Transfer LP yields more (8.97% vs 7.37%). 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 13.73 24.39 13.19
P/S 0.65 5.40 2.60
P/B 1.47 2.41 2.08
Price to free cash flow 13.30 20.92 10.14
EV/EBITDA 8.11 12.86 8.11
EV/Sales 1.27 9.27 3.89
Earnings yield 7.28% 4.10% 6.83%
Free cash flow yield 7.52% 4.78% 6.94%

Profitability

Metric ET TRP Oil & Gas Midstream median
Gross margin 23.58% 70.44% 58.81%
Operating margin 10.04% 53.94% 32.14%
Net margin 4.70% 22.19% 21.16%
Free cash flow margin 4.87% 25.80% 10.15%
Return on equity 11.30% 9.94% 11.30%
Return on assets 3.70% 2.89% 5.00%
Return on invested capital 5.72% 5.39% 6.13%

Growth

Metric ET TRP Oil & Gas Midstream median
Revenue growth (TTM) 33.27% 24.04% 15.44%
EPS growth (last fiscal year) (5.47%) (27.55%) —
Revenue growth, 5-year CAGR 17.04% 2.36% 8.96%
Net income growth, 5-year CAGR 0.00% (6.06%) 0.00%

Health

Metric ET TRP Oil & Gas Midstream median
Debt to equity 1.35 1.68 0.78
Current ratio 1.16 0.61 1.19
Net debt to EBITDA 4.56 5.43 3.42

Dividend

Metric ET TRP Oil & Gas Midstream median
Dividend yield 8.97% 7.37% 7.29%
Payout ratio — 4.07 0.64

Size

Metric ET TRP Oil & Gas Midstream median
Market cap 70.21b 59.65b 3.61b

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