Enbridge vs Kinder Morgan

Enbridge and Kinder Morgan are two of the largest energy infrastructure companies in North America, both operating in the transportation and storage of oil and natural gas. The stocks of these companies have been closely watched by investors due to their stable earnings and dividend yields. Enbridge has a larger market capitalization and a more diversified portfolio of assets, while Kinder Morgan has focused on expanding its pipeline network. Both companies face regulatory and environmental challenges, but continue to be attractive investment options in the energy sector.

Enbridge or Kinder Morgan?

When comparing Enbridge and Kinder Morgan, 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 Kinder Morgan.

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 7.04%, while Kinder Morgan has a dividend yield of 4.58%. 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 129.06%. On the other hand, Kinder Morgan reports a 5-year dividend growth of 9.19% year and a payout ratio of 103.68%.

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 19.73 and Kinder Morgan's P/E ratio at 22.56. 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 1.80 while Kinder Morgan's P/B ratio is 1.82.

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 Kinder Morgan's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enbridge's ROE at 9.54% and Kinder Morgan's ROE at 8.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $40.97 for Enbridge and $24.51 for Kinder Morgan. Over the past year, Enbridge's prices ranged from $31.31 to $41.35, with a yearly change of 32.07%. Kinder Morgan's prices fluctuated between $15.91 and $25.02, with a yearly change of 57.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.