Energy Transfer vs Kinder Morgan Which Is More Reliable?
Energy Transfer and Kinder Morgan are two prominent companies in the energy sector, each with its own unique strengths and weaknesses. Energy Transfer is known for its diversified portfolio of energy assets, including pipelines and terminals, while Kinder Morgan has a focus on natural gas infrastructure. Investors may be interested in comparing the performance of these two stocks to determine which offers the better investment opportunity. By analyzing factors such as industry trends, financial performance, and growth prospects, investors can make informed decisions about their investment choices in these companies.
Energy Transfer or Kinder Morgan?
When comparing Energy Transfer 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 Energy Transfer 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.
Energy Transfer has a dividend yield of 7.06%, while Kinder Morgan has a dividend yield of 4.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Energy Transfer reports a 5-year dividend growth of 0.89% year and a payout ratio of 117.89%. On the other hand, Kinder Morgan reports a 5-year dividend growth of 3.80% year and a payout ratio of 97.86%.
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 Energy Transfer P/E ratio at 12.84 and Kinder Morgan's P/E ratio at 22.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Energy Transfer P/B ratio is 0.00 while Kinder Morgan's P/B ratio is 1.94.
Growth Investors:
Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Energy Transfer has seen a 5-year revenue growth of 0.18%, while Kinder Morgan's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Energy Transfer's ROE at 18.26% and Kinder Morgan's ROE at 8.59%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are $17.88 for Energy Transfer and $26.22 for Kinder Morgan. Over the past year, Energy Transfer's prices ranged from $14.87 to $21.45, with a yearly change of 44.25%. Kinder Morgan's prices fluctuated between $17.45 and $31.48, with a yearly change of 80.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.
