Enbridge (NYSE: ENB) is one of 53 public companies in the “Oil & Gas Transportation Services” industry, but how does it weigh in compared to its peers? We will compare Enbridge to similar companies based on the strength of its profitability, risk, institutional ownership, earnings, dividends, valuation and analyst recommendations.

Volatility & Risk

Enbridge has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Enbridge’s peers have a beta of 1.39, meaning that their average share price is 39% more volatile than the S&P 500.

Dividends

Enbridge pays an annual dividend of $1.97 per share and has a dividend yield of 5.1%. Enbridge pays out 191.3% 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 171.5% of their earnings in the form of a dividend. Enbridge has increased its dividend for 5 consecutive years. Enbridge lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Enbridge and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enbridge 5.28% 6.04% 1.80%
Enbridge Competitors 17.27% 13.20% 5.49%

Analyst Ratings

This is a breakdown of current ratings and price targets for Enbridge and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enbridge 0 6 4 0 2.40
Enbridge Competitors 288 1775 2376 85 2.50

Enbridge presently has a consensus target price of $56.00, indicating a potential upside of 45.15%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 23.34%. Given Enbridge’s higher probable upside, analysts plainly believe Enbridge is more favorable than its peers.

Valuation and Earnings

This table compares Enbridge and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Enbridge $32.98 billion $6.11 billion 37.46
Enbridge Competitors $5.66 billion $1.31 billion 34.99

Enbridge has higher revenue and earnings than its peers. Enbridge is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

61.6% of Enbridge shares are owned by institutional investors. Comparatively, 57.3% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 9.3% of shares of all “Oil & Gas Transportation Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Enbridge peers beat Enbridge on 11 of the 15 factors compared.

Enbridge Company Profile

Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.

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