Kinder Morgan vs Energy Transfer

Kinder Morgan and Energy Transfer are two major players in the energy sector, both specializing in pipeline transportation and storage services for oil and natural gas. While both companies have seen fluctuations in their stock prices over the years, they have continued to be strong performers in the industry. Kinder Morgan has a larger market capitalization and a more diversified portfolio, while Energy Transfer has a higher dividend yield. Investors looking for stability and consistent growth may be inclined towards Kinder Morgan, while those seeking higher returns may prefer Energy Transfer.

Kinder Morgan or Energy Transfer?

When comparing Kinder Morgan 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 Kinder Morgan 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. Kinder Morgan has a dividend yield of 4.6%, while Energy Transfer has a dividend yield of 7.73%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kinder Morgan reports a 5-year dividend growth of 9.19% year and a payout ratio of 103.68%. On the other hand, Energy Transfer reports a 5-year dividend growth of 0.24% year and a payout ratio of 103.20%.

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 Kinder Morgan P/E ratio at 22.45 and Energy Transfer's P/E ratio at 12.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kinder Morgan P/B ratio is 1.81 while Energy Transfer's P/B ratio is 1.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kinder Morgan has seen a 5-year revenue growth of 0.08%, while Energy Transfer's is -0.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kinder Morgan's ROE at 8.07% and Energy Transfer's ROE at 11.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.51 for Kinder Morgan and $16.32 for Energy Transfer. Over the past year, Kinder Morgan's prices ranged from $15.91 to $25.02, with a yearly change of 57.26%. Energy Transfer's prices fluctuated between $12.90 and $16.64, with a yearly change of 28.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.