TC Energy vs Enbridge Which Is Stronger?

TC Energy and Enbridge are two of the largest energy infrastructure companies in North America, both with extensive pipeline networks and diversified portfolios. Investors often compare these two stocks due to their similar business models and potential for growth. TC Energy is known for its focus on natural gas and liquids pipelines, while Enbridge operates in the oil and gas sector as well as renewable energy. Both companies have strong fundamentals and provide stable dividends, making them attractive options for long-term investors.

TC Energy or Enbridge?

When comparing TC 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 TC 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. TC Energy has a dividend yield of 5.77%, while Enbridge has a dividend yield of 6.9%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TC Energy reports a 5-year dividend growth of 5.91% year and a payout ratio of 77.50%. On the other hand, Enbridge reports a 5-year dividend growth of 4.74% year and a payout ratio of 119.35%.

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 TC Energy P/E ratio at 13.93 and Enbridge's P/E ratio at 12.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TC Energy P/B ratio is 2.37 while Enbridge's P/B ratio is 1.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TC Energy has seen a 5-year revenue growth of -0.01%, while Enbridge's is -0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TC Energy's ROE at 17.25% and Enbridge's ROE at 11.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $48.40 for TC Energy and $41.90 for Enbridge. Over the past year, TC Energy's prices ranged from $34.95 to $50.22, with a yearly change of 43.69%. Enbridge's prices fluctuated between $32.85 and $43.31, with a yearly change of 31.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.