Enbridge vs Suncor Energy

Enbridge and Suncor Energy are two leading Canadian energy companies with a significant presence in the oil and gas industry. Enbridge primarily focuses on transportation and distribution of energy, while Suncor Energy is involved in the exploration, production, and refining of oil and gas. Both companies have a long-standing history of strong financial performance and have been reliable sources of dividend income for investors. With the fluctuating energy market conditions and environmental concerns, the stocks of these companies present unique investment opportunities for individuals seeking exposure to the energy sector.

Enbridge or Suncor Energy?

When comparing Enbridge and Suncor Energy, 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 Suncor Energy.

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 7.01%, while Suncor Energy has a dividend yield of 4.19%. 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, Suncor Energy reports a 5-year dividend growth of 13.42% year and a payout ratio of 36.86%.

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 19.78 and Suncor Energy's P/E ratio at 8.98. 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 1.81 while Suncor Energy's P/B ratio is 1.52.

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 Suncor Energy's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enbridge's ROE at 9.54% and Suncor Energy's ROE at 17.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $40.72 for Enbridge and $38.16 for Suncor Energy. Over the past year, Enbridge's prices ranged from $31.31 to $41.35, with a yearly change of 32.07%. Suncor Energy's prices fluctuated between $29.45 and $41.95, with a yearly change of 42.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.