Enbridge vs Keyera Which Is More Reliable?

Enbridge and Keyera are two prominent companies in the energy sector, each offering investors unique opportunities for growth and dividends. Enbridge, a leading energy transportation and distribution company, is known for its stable cash flows and attractive dividend payouts. On the other hand, Keyera, a midstream energy company, focuses on the gathering, processing, and marketing of natural gas and natural gas liquids. Both companies play crucial roles in the energy value chain, making them compelling investment options for those seeking exposure to the energy industry.

Enbridge or Keyera?

When comparing Enbridge and Keyera, 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 Keyera.

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 6.25%, while Keyera has a dividend yield of 5.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Enbridge reports a 5-year dividend growth of 5.56% year and a payout ratio of 92.14%. On the other hand, Keyera reports a 5-year dividend growth of -0.85% year and a payout ratio of 96.06%.

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 14.80 and Keyera's P/E ratio at 18.77. 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 2.01 while Keyera's P/B ratio is 3.22.

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 -0.00%, while Keyera's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enbridge's ROE at 13.63% and Keyera's ROE at 17.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $41.75 for Enbridge and $27.79 for Keyera. Over the past year, Enbridge's prices ranged from $32.85 to $45.78, with a yearly change of 39.36%. Keyera's prices fluctuated between $24.19 and $34.19, with a yearly change of 41.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.