Enbridge vs Energy Transfer Which Is More Lucrative?

Enbridge and Energy Transfer are two major players in the energy sector, each with a significant presence in the pipeline industry. Enbridge is a Canadian-based company with a diverse portfolio of energy transportation and distribution assets, while Energy Transfer is a US-based company primarily focused on natural gas and crude oil pipelines. Both companies have experienced fluctuations in their stock prices due to various factors such as regulatory changes, market conditions, and geopolitical events. Analyzing their performance and future prospects can provide valuable insights for investors seeking to capitalize on opportunities in the energy sector.

Enbridge or Energy Transfer?

When comparing Enbridge and Energy Transfer, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Enbridge and Energy Transfer.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Enbridge has a dividend yield of 6.73%, while Energy Transfer has a dividend yield of 6.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Enbridge reports a 5-year dividend growth of 4.74% year and a payout ratio of 122.28%. On the other hand, Energy Transfer reports a 5-year dividend growth of 0.24% year and a payout ratio of 110.76%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Enbridge P/E ratio at 19.95 and Energy Transfer's P/E ratio at 12.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Enbridge P/B ratio is 2.02 while Energy Transfer's P/B ratio is 1.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Enbridge has seen a 5-year revenue growth of -0.21%, while Energy Transfer's is -0.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enbridge's ROE at 10.30% and Energy Transfer's ROE at 13.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $43.12 for Enbridge and $18.89 for Energy Transfer. Over the past year, Enbridge's prices ranged from $32.85 to $44.14, with a yearly change of 34.37%. Energy Transfer's prices fluctuated between $13.12 and $20.02, with a yearly change of 52.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.