Competitors
Major publicly traded competitors of Enbridge Inc (NYSE:ENB) include TransCanada Corporation (NYSE:TRP), Enterprise Products Partners L.P. (NYSE:EPD), Oneok Partners LP (NYSE:OKS), and Kinder Morgan Inc (NYSE:KMP) . All of these companies operate in the energy transportation industry and compete directly with Enbridge.
TransCanada Corporation (NYSE:TRP) is valued at $32.64 billion, pays out a dividend yielding 4.19%, and carries a price-to-earnings ratio of 23. The company possesses a price-to-book ratio of 2.10. Fundamentally, TransCanada Corporation (NYSE:TRP)’s business model is strong, with a profit margin of 16.92% over the past 12 months (TTM). Looking forward, the company is projected to sustain low-single-digit growth in terms of revenue through 2015.
Enterprise Product Partners is valued at $54.08 billion, pays out a dividend yielding 4.56%, and carries a price-to-earnings ratio of 20.97. The company possesses a price-to-book ratio of 4.14. Fundamentally, Enterprise Product Partners’ business model is profitable, with a TTM profit margin of 5.90%. In terms of revenue, the company is expected to sustain mid-single-digit growth through 2015.
Oneok Partners LP (NYSE:OKS) is valued at $10.42 billion, pays out a dividend yielding 6.04%, and carries a price-to-earnings ratio of 18.51. The company possesses a price-to-book ratio of 2.56. Fundamentally, Oneok Partners LP (NYSE:OKS)’s business model is sound, with a TTM profit margin of 7.97%. Into the future, the company is projected to experience sustained double-digit growth in terms of revenue.
Kinder Morgan Inc (NYSE:KMI) is valued at $31.53 billion, pays out a dividend yielding 6.28%, and carries a price-to-earnings ratio of 38.63. The company possesses a price-to-book ratio of 3.56. Fundamentally, Kinder Morgan Inc (NYSE:KMI)’s business model is the strongest of the group with a TTM profit margin of 20.62%. Into the future, the company is anticipated to have revenue fluctuate around the $11 billion level.
The Foolish bottom line
Financially Enbridge Inc (NYSE:ENB) is extremely solid. The company possesses stable revenue growth, a positive free cash-flow-position, and a growing dividend which will reward investors for years to come. Despite the company’s rather substantial net debt position, this flaw can be easily corrected by the company as much of the debt has been accumulated to finance strategic expansion plans, which will yield returns in the future. Over the past decade, Enbridge Inc (NYSE:ENB) has trounced the overall market’s performance, and should continue to do so into the future as it transports North America’s energy of tomorrow.
Ryan Guenette has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners L.P. (NYSE:EPD) and Oneok Partners LP (NYSE:OKS).
The article Where Energy Meets Return originally appeared on Fool.com.
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