Head-To-Head Review: Enbridge (ENB) versus The Competition

Enbridge (NYSE:ENB – Get Free Report) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its rivals? We will compare Enbridge to related businesses based on the strength of its valuation, analyst recommendations, risk, profitability, dividends, earnings and institutional ownership.

Volatility and Risk

Enbridge has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Enbridge’s rivals have a beta of -4.03, meaning that their average share price is 503% less volatile than the S&P 500.

Dividends

Enbridge pays an annual dividend of $2.75 per share and has a dividend yield of 5.6%. Enbridge pays out 147.1% 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 & Consumable Fuels” companies pay a dividend yield of 8.4% and pay out -119.8% of their earnings in the form of a dividend. Enbridge has raised its dividend for 2 consecutive years. Enbridge lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Enbridge and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Enbridge $46.66 billion $5.36 billion 26.43
Enbridge Competitors $10.76 billion $5.51 billion 0.53

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

Profitability

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

Net Margins Return on Equity Return on Assets
Enbridge 7.20% 11.17% 3.02%
Enbridge Competitors -472.92% 19.47% 6.31%

Insider & Institutional Ownership

54.6% of Enbridge shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.4% of Enbridge shares are held by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Enbridge and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enbridge 0 5 9 1 2.73
Enbridge Competitors 5960 26925 40745 2403 2.52

Enbridge currently has a consensus price target of $65.88, suggesting a potential upside of 33.27%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 16.89%. Given Enbridge’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Enbridge is more favorable than its rivals.

Summary

Enbridge beats its rivals on 9 of the 15 factors compared.

Enbridge Company Profile

(Get Free Report)

Enbridge Inc., together with its subsidiaries, operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, waste heat recovery, and transmission assets in North America. The Energy Services segment provides physical commodity marketing and logistical services to refiners, producers, and other customers in Canada and the United States. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

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