Enbridge (NYSE:ENB) vs. Transportadora De Gas Sa Ord B (NYSE:TGS) Financial Comparison

Enbridge (NYSE:ENB) and Transportadora De Gas Sa Ord B (NYSE:TGS) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Enbridge and Transportadora De Gas Sa Ord B, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enbridge	0	5	4	0	2.44
Transportadora De Gas Sa Ord B	0	0	2	0	3.00

Enbridge currently has a consensus target price of $67.00, suggesting a potential upside of 48.66%. Transportadora De Gas Sa Ord B has a consensus target price of $40.00, suggesting a potential upside of 53.67%. Given Transportadora De Gas Sa Ord B’s stronger consensus rating and higher possible upside, analysts plainly believe Transportadora De Gas Sa Ord B is more favorable than Enbridge.

Volatility and Risk

Enbridge has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Transportadora De Gas Sa Ord B has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Valuation & Earnings

This table compares Enbridge and Transportadora De Gas Sa Ord B”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enbridge	$38.22 billion	2.57	$3.97 billion	$1.94	23.23
Transportadora De Gas Sa Ord B	$1.34 billion	2.93	$407.18 million	$2.51	10.37

Enbridge has higher revenue and earnings than Transportadora De Gas Sa Ord B. Transportadora De Gas Sa Ord B is trading at a lower price-to-earnings ratio than Enbridge, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

54.6% of Enbridge shares are owned by institutional investors. Comparatively, 3.3% of Transportadora De Gas Sa Ord B shares are owned by institutional investors. 0.4% of Enbridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Enbridge pays an annual dividend of $2.72 per share and has a dividend yield of 6.0%. Transportadora De Gas Sa Ord B pays an annual dividend of $0.93 per share and has a dividend yield of 3.6%. Enbridge pays out 140.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Transportadora De Gas Sa Ord B pays out 37.1% of its earnings in the form of a dividend. Enbridge has raised its dividend for 2 consecutive years. Enbridge is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Enbridge and Transportadora De Gas Sa Ord B’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enbridge	10.16%	10.41%	3.10%
Transportadora De Gas Sa Ord B	31.29%	15.52%	10.23%

Summary

Enbridge beats Transportadora De Gas Sa Ord B on 9 of the 17 factors compared between the two stocks.

About Enbridge

Enbridge Inc., together with its subsidiaries, operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, waste heat recovery, and transmission assets in North America. The Energy Services segment provides physical commodity marketing and logistical services to refiners, producers, and other customers in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

About Transportadora De Gas Sa Ord B

Transportadora de Gas del Sur S.A. engages in transportation of natural gas, and production and commercialization of natural gas liquids in Argentina and internationally. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Midstream; and Telecommunications. The Natural Gas Transportation segment transports natural gas through pipeline system to distribution companies, power plants, and industrial customers. It provides operation and maintenance services for the natural gas transportation facilities. The Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, liquid petroleum gas, natural gasoline, propane, and butane. This segment offers certain related services comprising reception, storage, and dispatch of the liquids. The Midstream segment provides natural gas conditioning services; treatment, removal of impurities and natural gas compression, including the collection and transport of natural gas; and inspection and maintenance of pipelines and compressor plants services. In addition, this segment offers steam generation for electricity production and management services for expansion works and steam generation for the production of electricity. The Telecommunications segment offers data transmission services through a network of digital terrestrial radio relay. It serves residential, commercial, industrial, and electric power generation end users. The company was incorporated in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.