Suncor Energy vs Enbridge

Suncor Energy and Enbridge are two prominent Canadian energy companies with distinct business models in the oil and gas sector. Suncor Energy primarily focuses on oil sands production, refining, and marketing, while Enbridge operates as a leading energy infrastructure company, specializing in pipelines and storage facilities. Both companies have faced challenges in recent years due to fluctuations in oil prices and regulatory issues. Investors looking to invest in the energy sector may want to carefully consider the differences and potential risks associated with Suncor Energy and Enbridge stocks.

Suncor Energy or Enbridge?

When comparing Suncor Energy and Enbridge, 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 Suncor Energy and Enbridge.

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. Suncor Energy has a dividend yield of 4.0%, while Enbridge has a dividend yield of 7.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Suncor Energy reports a 5-year dividend growth of 13.42% year and a payout ratio of 36.86%. On the other hand, Enbridge reports a 5-year dividend growth of 4.74% year and a payout ratio of 129.06%.

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 Suncor Energy P/E ratio at 9.40 and Enbridge's P/E ratio at 19.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Suncor Energy P/B ratio is 1.59 while Enbridge's P/B ratio is 1.80.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Suncor Energy has seen a 5-year revenue growth of 0.54%, while Enbridge's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Suncor Energy's ROE at 17.35% and Enbridge's ROE at 9.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $39.94 for Suncor Energy and $40.97 for Enbridge. Over the past year, Suncor Energy's prices ranged from $29.45 to $41.95, with a yearly change of 42.44%. Enbridge's prices fluctuated between $31.31 and $41.35, with a yearly change of 32.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.