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 $68.5B against $62.2B — 1.1× the size. Energy Transfer LP trades at the lower P/E: 13.8× against 25.6×. 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 (6.62% vs 4.05%). 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 13.82 25.62 12.77
P/S 0.65 5.67 2.36
P/B 1.48 2.53 2.09
Price to free cash flow 13.38 21.97 9.71
EV/EBITDA 8.14 13.23 8.30
EV/Sales 1.28 9.54 3.88
Earnings yield 7.23% 3.90% 7.15%
Free cash flow yield 7.47% 4.55% 6.86%

Profitability

Metric ET TRP Oil & Gas Midstream median
Gross margin 23.58% 70.44% 56.58%
Operating margin 10.04% 53.94% 34.18%
Net margin 4.70% 22.19% 22.50%
Free cash flow margin 4.87% 25.80% 13.70%
Return on equity 11.30% 9.94% 14.65%
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% 15.60%
EPS growth (last fiscal year) (5.47%) (27.55%) (7.86%)
Revenue growth, 5-year CAGR 17.04% 2.36% 9.59%
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 6.62% 4.05% 4.54%
Payout ratio 0.92 1.04 0.76

Size

Metric ET TRP Oil & Gas Midstream median
Market cap 68.45b 62.17b 3.73b

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