Financial Analysis: Tallgrass Energy GP, (TEGP) vs. Its Competitors
Tallgrass Energy GP, (NYSE: TEGP) is one of 53 public companies in the “Oil & Gas Transportation Services” industry, but how does it compare to its competitors? We will compare Tallgrass Energy GP, to related companies based on the strength of its risk, profitability, dividends, valuation, earnings, institutional ownership and analyst recommendations.
Earnings and Valuation
This table compares Tallgrass Energy GP, and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Tallgrass Energy GP,||$614.20 million||$349.34 million||40.41|
|Tallgrass Energy GP, Competitors||$5.66 billion||$1.31 billion||37.04|
Tallgrass Energy GP,’s competitors have higher revenue and earnings than Tallgrass Energy GP,. Tallgrass Energy GP, is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Tallgrass Energy GP, pays an annual dividend of $1.37 per share and has a dividend yield of 5.0%. Tallgrass Energy GP, pays out 201.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.6% and pay out 172.0% of their earnings in the form of a dividend. Tallgrass Energy GP, lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares Tallgrass Energy GP, and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tallgrass Energy GP,||5.91%||2.01%||0.96%|
|Tallgrass Energy GP, Competitors||18.17%||14.46%||5.57%|
Institutional and Insider Ownership
36.9% of Tallgrass Energy GP, shares are held by institutional investors. Comparatively, 57.2% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.3% of shares of all “Oil & Gas Transportation Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Tallgrass Energy GP, has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, Tallgrass Energy GP,’s competitors have a beta of 1.39, indicating that their average share price is 39% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Tallgrass Energy GP, and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tallgrass Energy GP,||1||5||4||0||2.30|
|Tallgrass Energy GP, Competitors||274||1754||2344||85||2.50|
Tallgrass Energy GP, presently has a consensus price target of $30.22, suggesting a potential upside of 9.98%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 20.66%. Given Tallgrass Energy GP,’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Tallgrass Energy GP, has less favorable growth aspects than its competitors.
Tallgrass Energy GP, competitors beat Tallgrass Energy GP, on 13 of the 15 factors compared.
Tallgrass Energy GP, Company Profile
Tallgrass Energy GP, LP is a limited partnership company, which includes the operations of Tallgrass Equity, LLC (Tallgrass Equity), Tallgrass MLP GP, LLC, Tallgrass Energy Partners, LP (TEP), and TEP’s subsidiaries. TEP owns, operates, acquires and develops midstream energy assets in North America. TEP’s segments include Crude Oil Transportation & Logistics, which is engaged in the ownership and operation of a crude oil pipeline system, and crude oil storage and terminaling facilities; Natural Gas Transportation & Logistics, which is engaged in the ownership and operation of interstate natural gas pipelines and integrated natural gas storage facilities; Processing & Logistics, which is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities, and the provision of water business services to the oil and gas exploration and production industry, and Corporate and Other.
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