Head-To-Head Review: Enovix (NASDAQ:ENVX) and TC Energy (NYSE:TRP)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enovix	-525.93%	-61.78%	-25.41%
TC Energy	23.86%	10.61%	3.16%

Earnings & Valuation

This table compares Enovix and TC Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovix	$23.07 million	53.88	-$222.24 million	($0.81)	-7.11
TC Energy	$10.05 billion	6.36	$3.43 billion	$2.32	26.49

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

Insider and Institutional Ownership

50.9% of Enovix shares are owned by institutional investors. Comparatively, 83.1% of TC Energy shares are owned by institutional investors. 14.1% of Enovix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Enovix and TC Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enovix	1	3	5	0	2.44
TC Energy	0	2	7	2	3.00

Enovix currently has a consensus price target of $17.50, indicating a potential upside of 203.82%. TC Energy has a consensus price target of $84.00, indicating a potential upside of 36.68%. Given Enovix’s higher possible upside, analysts clearly believe Enovix is more favorable than TC Energy.

Risk & Volatility

Enovix has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500. Comparatively, TC Energy has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Summary

TC Energy beats Enovix on 11 of the 15 factors compared between the two stocks.

About Enovix

Enovix Corporation designs develops and manufactures silicon-anode lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.

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.