Critical Contrast: Enbridge (NYSE:ENB) vs. Expro Group (NYSE:XPRO)

Enbridge (NYSE:ENB) and Expro Group (NYSE:XPRO) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Earnings and Valuation

This table compares Enbridge and Expro Group”s revenue, earnings per share 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
Expro Group	$1.71 billion	0.57	$51.92 million	$0.58	14.52

Enbridge has higher revenue and earnings than Expro Group. Expro Group is trading at a lower price-to-earnings ratio than Enbridge, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Enbridge and Expro Group’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%
Expro Group	3.98%	6.89%	4.40%

Insider & Institutional Ownership

54.6% of Enbridge shares are owned by institutional investors. Comparatively, 92.1% of Expro Group shares are owned by institutional investors. 0.4% of Enbridge shares are owned by company insiders. Comparatively, 1.8% of Expro Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Enbridge has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Expro Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Enbridge and Expro Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enbridge	0	5	4	0	2.44
Expro Group	0	2	2	0	2.50

Enbridge currently has a consensus target price of $67.00, suggesting a potential upside of 48.66%. Expro Group has a consensus target price of $11.50, suggesting a potential upside of 36.58%. Given Enbridge’s higher probable upside, analysts clearly believe Enbridge is more favorable than Expro Group.

Summary

Enbridge beats Expro Group on 9 of the 14 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 Expro Group

Expro Group Holdings N.V. engages in the provision of energy services in North and Latin America, Europe and Sub-Saharan Africa, the Middle East and North Africa, and the Asia-Pacific. The company provides well construction services, such as technology solutions in drilling, tubular running services, and cementing and tubulars; and well management services, including well flow management, subsea well access, and well intervention and integrity solutions. It serves exploration and production companies in onshore and offshore environments in approximately 60 countries. Expro Group Holdings N.V. was founded in 1938 and is based in Houston, Texas.