Tallgrass Energy GP, (NYSE: TEGP) is one of 53 public companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its competitors? We will compare Tallgrass Energy GP, to similar businesses based on the strength of its valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Risk and Volatility

Tallgrass Energy GP, has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Tallgrass Energy GP,’s competitors have a beta of 1.39, meaning that their average share price is 39% more volatile than the S&P 500.

Profitability

This table compares Tallgrass Energy GP, and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tallgrass Energy GP, 5.91% 2.01% 0.96%
Tallgrass Energy GP, Competitors 17.52% 14.07% 5.45%

Institutional & Insider Ownership

36.9% of Tallgrass Energy GP, shares are held by institutional investors. Comparatively, 57.2% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 9.2% of shares of all “Oil & Gas Transportation Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tallgrass Energy GP, and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Tallgrass Energy GP, $614.20 million $349.34 million 38.40
Tallgrass Energy GP, Competitors $5.66 billion $1.31 billion 35.57

Tallgrass Energy GP,’s competitors have higher revenue and earnings than Tallgrass Energy GP,. Tallgrass Energy GP, is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Tallgrass Energy GP, pays an annual dividend of $1.37 per share and has a dividend yield of 5.2%. Tallgrass Energy GP, pays out 201.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.8% and pay out 172.0% of their earnings in the form of a dividend. Tallgrass Energy GP, lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings for Tallgrass Energy GP, and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tallgrass Energy GP, 1 5 4 0 2.30
Tallgrass Energy GP, Competitors 283 1772 2360 85 2.50

Tallgrass Energy GP, presently has a consensus target price of $30.11, suggesting a potential upside of 15.32%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 24.48%. Given Tallgrass Energy GP,’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Tallgrass Energy GP, has less favorable growth aspects than its competitors.

Summary

Tallgrass Energy GP, competitors beat Tallgrass Energy GP, on 13 of the 15 factors compared.

Tallgrass Energy GP, Company Profile

Tallgrass Energy GP, LP is a limited partnership company, which includes the operations of Tallgrass Equity, LLC (Tallgrass Equity), Tallgrass MLP GP, LLC, Tallgrass Energy Partners, LP (TEP), and TEP’s subsidiaries. TEP owns, operates, acquires and develops midstream energy assets in North America. TEP’s segments include Crude Oil Transportation & Logistics, which is engaged in the ownership and operation of a crude oil pipeline system, and crude oil storage and terminaling facilities; Natural Gas Transportation & Logistics, which is engaged in the ownership and operation of interstate natural gas pipelines and integrated natural gas storage facilities; Processing & Logistics, which is engaged in the ownership and operation of natural gas processing, treating and fractionation facilities, and the provision of water business services to the oil and gas exploration and production industry, and Corporate and Other.

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