Analyzing GE Vernova (NYSE:GEV) & TC Energy (NYSE:TRP)

TC Energy (NYSE:TRP) and GE Vernova (NYSE:GEV) are both large-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Insider & Institutional Ownership

83.1% of TC Energy shares are held by institutional investors. 0.2% of GE Vernova shares are held by company 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.

Volatility and Risk

TC Energy has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, GE Vernova has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Earnings and Valuation

This table compares TC Energy and GE Vernova”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TC Energy	$10.91 billion	6.52	$2.52 billion	$2.30	29.69
GE Vernova	$38.07 billion	6.98	$4.88 billion	$34.94	28.54

GE Vernova has higher revenue and earnings than TC Energy. GE Vernova is trading at a lower price-to-earnings ratio than TC Energy, indicating that it is currently the more affordable of the two stocks.

Dividends

TC Energy pays an annual dividend of $2.47 per share and has a dividend yield of 3.6%. GE Vernova pays an annual dividend of $2.00 per share and has a dividend yield of 0.2%. TC Energy pays out 107.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. GE Vernova pays out 5.7% of its earnings in the form of a dividend. TC Energy has raised its dividend for 1 consecutive years. TC Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations and price targets for TC Energy and GE Vernova, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TC Energy	0	6	7	1	2.64
GE Vernova	0	5	23	2	2.90

TC Energy currently has a consensus target price of $78.50, suggesting a potential upside of 14.96%. GE Vernova has a consensus target price of $1,133.15, suggesting a potential upside of 13.64%. Given TC Energy’s higher possible upside, research analysts plainly believe TC Energy is more favorable than GE Vernova.

Profitability

This table compares TC Energy and GE Vernova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TC Energy	22.22%	10.74%	3.14%
GE Vernova	23.03%	42.42%	7.78%

Summary

GE Vernova beats TC Energy on 13 of the 18 factors compared between the two stocks.

About TC Energy

TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,600 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet. In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, Texas, and the United States Gulf Coast. Further, the company owns or has interests in power generation facilities with approximately 4,600 megawatts; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage facilities in in Alberta, Ontario, Québec, and New Brunswick. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.