Analyzing Hallador Energy (NASDAQ:HNRG) and TC Energy (NYSE:TRP)

Hallador Energy (NASDAQ:HNRG) and TC Energy (NYSE:TRP) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Hallador Energy and TC Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hallador Energy	1	2	2	2	2.71
TC Energy	0	4	6	2	2.83

Hallador Energy currently has a consensus price target of $21.25, indicating a potential upside of 6.52%. TC Energy has a consensus price target of $84.00, indicating a potential upside of 53.76%. Given TC Energy’s stronger consensus rating and higher possible upside, analysts plainly believe TC Energy is more favorable than Hallador Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hallador Energy	-37.57%	33.97%	10.67%
TC Energy	23.86%	10.61%	3.16%

Institutional and Insider Ownership

61.4% of Hallador Energy shares are owned by institutional investors. Comparatively, 83.1% of TC Energy shares are owned by institutional investors. 23.7% of Hallador Energy 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hallador Energy	$404.39 million	2.16	-$226.14 million	($4.48)	-4.45
TC Energy	$14.65 billion	3.88	$3.43 billion	$2.32	23.55

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

Volatility and Risk

Hallador Energy has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, TC Energy has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Summary

TC Energy beats Hallador Energy on 11 of the 14 factors compared between the two stocks.

About Hallador Energy

Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown; Freelandville Center Pit surface mine in Freelandville; and Prosperity Surface mine in Petersburg, Indiana. It is also involved in gas exploration activities in Indiana; and operation of logistics transport facility. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.

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.