Tc Pipelines (NYSE:TRP) and Southcross Energy Partners (NYSE:SXE) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
This table compares Tc Pipelines and Southcross Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Southcross Energy Partners||-10.77%||-14.07%||-6.20%|
63.7% of Tc Pipelines shares are owned by institutional investors. Comparatively, 1.4% of Southcross Energy Partners shares are owned by institutional investors. 23.8% of Southcross Energy Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Tc Pipelines and Southcross Energy Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tc Pipelines||$10.55 billion||4.11||$2.86 billion||$2.98||15.74|
|Southcross Energy Partners||$665.95 million||0.01||-$67.59 million||N/A||N/A|
Tc Pipelines has higher revenue and earnings than Southcross Energy Partners.
Volatility and Risk
Tc Pipelines has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Southcross Energy Partners has a beta of 4.59, suggesting that its share price is 359% more volatile than the S&P 500.
This is a summary of current recommendations for Tc Pipelines and Southcross Energy Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Southcross Energy Partners||0||0||0||0||N/A|
Tc Pipelines currently has a consensus price target of $51.20, suggesting a potential upside of 9.12%. Given Tc Pipelines’ higher probable upside, research analysts clearly believe Tc Pipelines is more favorable than Southcross Energy Partners.
Tc Pipelines pays an annual dividend of $2.24 per share and has a dividend yield of 4.8%. Southcross Energy Partners does not pay a dividend. Tc Pipelines pays out 75.2% 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 has increased its dividend for 3 consecutive years and Southcross Energy Partners has increased its dividend for 5 consecutive years.
Tc Pipelines beats Southcross Energy Partners on 10 of the 14 factors compared between the two stocks.
Tc Pipelines 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 plants, industrial facilities, interconnecting pipelines, and other businesses. It owns and operates wholly-owned natural gas pipelines of 81,500 kilometers and partially-owned natural gas pipelines of 11,100 kilometers; and regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. The company also owns and manages midstream assets that provide natural gas producer services, including gathering, treatment, conditioning, processing, and liquids handling with a focus on the Appalachian Basin. In addition, it owns and operates liquids pipelines infrastructure for the transportation of Alberta crude oil supplies to the refining markets in Illinois, Oklahoma, and the U.S. Gulf Coast, as well as U.S. crude oil supplies from the market hub at Cushing, Oklahoma to the U.S. Gulf Coast. Further, the company operates 10 power generation facilities with a power generation capacity of 6,615 megawatt powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Québec, New Brunswick, and Arizona; and owns and operates approximately 118 billion cubic feet of unregulated natural gas storage capacity in Alberta. TransCanada Corporation was founded in 1951 and is headquartered in Calgary, Canada.
Southcross Energy Partners Company Profile
Southcross Energy Partners, L.P., together with its subsidiaries, provides natural gas gathering, processing, treating, compression, and transportation services in the United States. The company also offers natural gas liquid (NGL) fractionation and transportation services. In addition, it supplies natural gas to industrial, commercial, and power generation customers, as well as local distribution companies. The company operates 2 gas processing plants, 1 fractionation plant, and gathering and transportation pipelines in South Texas, Mississippi, and Alabama. Southcross Energy Partners GP, LLC operates as a general partner of Southcross Energy Partners, L.P. The company was founded in 2009 and is headquartered in Dallas, Texas. Southcross Energy Partners, L.P. is a subsidiary of Southcross Holdings LP.
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