Head-To-Head Analysis: Western Gas Equity Partners (WGP) vs. TC PIPELINES LP Common Stock (TRP)
Western Gas Equity Partners (NYSE: TRP) and TC PIPELINES LP Common Stock (NYSE:TRP) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Western Gas Equity Partners pays an annual dividend of $2.33 per share and has a dividend yield of 6.5%. TC PIPELINES LP Common Stock pays an annual dividend of $0.21 per share and has a dividend yield of 0.5%. Western Gas Equity Partners pays out 135.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TC PIPELINES LP Common Stock pays out 8.8% of its earnings in the form of a dividend. Western Gas Equity Partners has raised its dividend for 4 consecutive years. Western Gas Equity Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Western Gas Equity Partners has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, TC PIPELINES LP Common Stock has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Western Gas Equity Partners and TC PIPELINES LP Common Stock, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western Gas Equity Partners||0||4||6||0||2.60|
|TC PIPELINES LP Common Stock||0||1||8||0||2.89|
Western Gas Equity Partners currently has a consensus target price of $42.30, indicating a potential upside of 17.60%. TC PIPELINES LP Common Stock has a consensus target price of $57.67, indicating a potential upside of 29.97%. Given TC PIPELINES LP Common Stock’s stronger consensus rating and higher possible upside, analysts clearly believe TC PIPELINES LP Common Stock is more favorable than Western Gas Equity Partners.
Valuation and Earnings
This table compares Western Gas Equity Partners and TC PIPELINES LP Common Stock’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western Gas Equity Partners||$2.25 billion||3.50||$376.60 million||$1.72||20.91|
|TC PIPELINES LP Common Stock||$10.37 billion||3.88||$2.44 billion||$2.38||18.64|
TC PIPELINES LP Common Stock has higher revenue and earnings than Western Gas Equity Partners. TC PIPELINES LP Common Stock is trading at a lower price-to-earnings ratio than Western Gas Equity Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Western Gas Equity Partners and TC PIPELINES LP Common Stock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western Gas Equity Partners||17.52%||9.42%||4.36%|
|TC PIPELINES LP Common Stock||23.37%||12.90%||3.45%|
Institutional and Insider Ownership
19.2% of Western Gas Equity Partners shares are owned by institutional investors. Comparatively, 60.6% of TC PIPELINES LP Common Stock shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
TC PIPELINES LP Common Stock beats Western Gas Equity Partners on 11 of the 16 factors compared between the two stocks.
Western Gas Equity Partners Company Profile
Western Gas Equity Partners, LP, together with its subsidiaries, engages in the gathering, processing, compressing, treating, stabilizing, and transporting natural gas, condensate, natural gas liquids, and crude oil primarily in the United States. It is also involved in the gathering and disposing of produced water; and buying and selling of natural gas. Western Gas Equity Holdings, LLC serves as the general partner of Western Gas Equity Partners, LP. The company was founded in 2007 and is headquartered in The Woodlands, Texas. Western Gas Equity Partners, LP is a subsidiary of Anadarko Petroleum Corporation.
TC PIPELINES LP Common Stock Company Profile
TransCanada Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Energy segments. The company transports natural gas to local distribution companies, power generation and individual facilities, interconnecting pipelines, and other businesses. It owns and operates a network of 80,800 km of wholly-owned natural gas pipelines and 11,100 km of partially-owned natural gas pipelines; and regulated natural gas storage facilities with a total working gas capacity of 535 Bcf. The company also owns and operates Keystone pipeline system of 4,324 km for the transportation of crude oil from Hardisty, Alberta to Wood River and Patoka in Illinois; Cushing, Oklahoma; and the U.S. Gulf Coast. In addition, it operates terminal and pipeline facilities to transport crude oil from the market hub at Cushing, Oklahoma to the U.S. Gulf Coast refining markets. Further, the company owns, controls, and develops approximately 7,000 MW of generation capacity powered by natural gas, nuclear, and wind assets; and owns and operates regulated and unregulated natural gas storage facilities. It also operates 11 power generation facilities and 118 Bcf of non-regulated natural gas storage facilities in Alberta, Ontario, Québec, and New Brunswick in Canada, as well as in Arizona. TransCanada Corporation was founded in 1951 and is headquartered in Calgary, Canada.
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