Energy Transfer Equity (NYSE: ETE) is one of 33 public companies in the “Natural gas transmission” industry, but how does it compare to its rivals? We will compare Energy Transfer Equity to related businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.
This is a summary of recent ratings and price targets for Energy Transfer Equity and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Energy Transfer Equity||0||2||11||0||2.85|
|Energy Transfer Equity Competitors||359||1482||2042||73||2.46|
Energy Transfer Equity presently has a consensus target price of $20.73, indicating a potential upside of 30.61%. As a group, “Natural gas transmission” companies have a potential upside of 23.48%. Given Energy Transfer Equity’s stronger consensus rating and higher possible upside, research analysts plainly believe Energy Transfer Equity is more favorable than its rivals.
Risk & Volatility
Energy Transfer Equity has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Energy Transfer Equity’s rivals have a beta of 1.54, meaning that their average stock price is 54% more volatile than the S&P 500.
This table compares Energy Transfer Equity and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Energy Transfer Equity||2.30%||4.48%||1.42%|
|Energy Transfer Equity Competitors||19.00%||9.07%||4.77%|
Energy Transfer Equity pays an annual dividend of $1.22 per share and has a dividend yield of 7.7%. Energy Transfer Equity pays out 100.8% 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, “Natural gas transmission” companies pay a dividend yield of 6.9% and pay out 131.5% of their earnings in the form of a dividend. Energy Transfer Equity has raised its dividend for 5 consecutive years. Energy Transfer Equity is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Energy Transfer Equity and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Energy Transfer Equity||$40.52 billion||$915.00 million||13.12|
|Energy Transfer Equity Competitors||$5.37 billion||$747.92 million||38.96|
Energy Transfer Equity has higher revenue and earnings than its rivals. Energy Transfer Equity is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Insider and Institutional Ownership
49.1% of Energy Transfer Equity shares are held by institutional investors. Comparatively, 54.3% of shares of all “Natural gas transmission” companies are held by institutional investors. 3.3% of Energy Transfer Equity shares are held by company insiders. Comparatively, 6.9% of shares of all “Natural gas transmission” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Energy Transfer Equity beats its rivals on 8 of the 15 factors compared.
About Energy Transfer Equity
Energy Transfer Equity, L.P. provides diversified energy-related services in the United States. It owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and approximately 11,800 miles of interstate natural gas pipelines. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. Its midstream operations include ownership and operation of natural gas and NGL gathering pipelines, natural gas processing plants, natural gas treating facilities, and natural gas conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; a natural gas gathering system in Ohio; and transportation and supply of water to natural gas producers in Pennsylvania. The company's natural gas liquid (NGL) transportation and services operations include ownership of approximately 1,400 miles of NGL pipelines, five NGL and propane fractionation facilities, and NGL storage facilities. It also sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. In addition, it provides natural gas compression services; treating services, such as carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates a total of 75 megawatts electrical power. The company was founded in 2002 and is based in Dallas, Texas.
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