In a detailed comparison of two leading energy companies, **TC Energy** (NYSE: TRP) and **Expand Energy** (NASDAQ: EXE), various factors reveal the strengths and weaknesses of each firm. This analysis focuses on their dividends, valuations, profitability, institutional ownership, earnings, risk factors, and analyst recommendations.
**Volatility and Risk Assessment**
Assessing stock volatility, **TC Energy** has a beta of **0.73**, indicating that its stock is **27%** less volatile than the S&P 500. In contrast, **Expand Energy** boasts a beta of **0.47**, suggesting that its stock price is **53%** less volatile in comparison. This lower volatility may indicate a more stable investment in Expand Energy, appealing to risk-averse investors.
**Dividend Comparison**
**TC Energy** offers an annual dividend of **$2.41** per share, resulting in a dividend yield of **4.5%**. On the other hand, **Expand Energy** pays an annual dividend of **$2.30** per share, with a yield of **2.0%**. Notably, TC Energy has a concerning payout ratio, distributing **103.9%** of its earnings as dividends, which raises questions about its sustainability. Conversely, Expand Energy maintains a payout ratio of **65.3%**, indicating a healthier balance between earnings and dividends.
Over the past year, **TC Energy** has raised its dividend, marking a positive trend in its dividend growth. This positions TC Energy as a more attractive dividend investment compared to Expand Energy.
**Valuation and Earnings Insights**
In terms of financial performance, **TC Energy** surpasses Expand Energy with higher revenues and earnings. Moreover, it is currently trading at a lower price-to-earnings ratio, suggesting it offers better value for investors at this time. The juxtaposition of these metrics highlights TC Energy’s favorable position within the market.
**Profitability Metrics**
A closer look at profitability reveals key differences between the two companies. While specific figures for net margins, return on equity, and return on assets were not detailed, it is crucial for investors to consider these factors when evaluating long-term investment potential.
**Institutional and Insider Ownership**
Institutional investors have a strong presence in both companies, with **83.1%** of **TC Energy** shares owned by these entities. Comparatively, **Expand Energy** enjoys even stronger institutional backing, with **97.9%** of its shares held by institutional investors. Nonetheless, only **0.2%** of Expand Energy’s shares are owned by company insiders, which may indicate a lack of confidence from management in the company’s future prospects.
**Analyst Recommendations**
According to recent analyses from MarketBeat.com, **TC Energy** has a consensus target price of **$84.00**, indicating a potential upside of **55.80%**. In contrast, **Expand Energy** has a lower target price of **$128.32**, reflecting a potential upside of only **11.59%**. Analysts’ optimism regarding TC Energy’s future performance further solidifies its position as a more favorable investment option.
**Conclusion: A Clear Leader Emerges**
Overall, **TC Energy** appears to outperform **Expand Energy** across multiple critical factors, winning **9 out of 17** evaluated categories. This comprehensive analysis suggests that investors may find greater value and stability in TC Energy, despite its high payout ratio.
**About TC Energy**
**TC Energy Corporation**, headquartered in **Calgary, Canada**, operates as a key player in North America’s energy infrastructure. The company manages a vast network of **93,600 kilometers** of natural gas pipelines and offers regulated natural gas storage facilities with a capacity of **532 billion cubic feet**. Furthermore, it operates approximately **4,900 kilometers** of liquids pipelines and has interests in power generation facilities totaling around **4,600 megawatts**.
**About Expand Energy**
**Expand Energy Corporation**, based in **Oklahoma City**, is an independent natural gas producer primarily focused on the United States market. Formerly known as Chesapeake Energy Corporation, Expand Energy has continued to evolve in the dynamic energy sector.
This analysis of TC Energy and Expand Energy serves as a resource for investors seeking to navigate the complexities of the energy market.
