Tallgrass Energy (NYSE: TGE) is one of 34 public companies in the “Natural gas transmission” industry, but how does it contrast to its competitors? We will compare Tallgrass Energy to related companies based on the strength of its risk, earnings, profitability, analyst recommendations, institutional ownership, dividends and valuation.
Earnings and Valuation
This table compares Tallgrass Energy and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Tallgrass Energy||$655.90 million||-$128.72 million||32.66|
|Tallgrass Energy Competitors||$5.28 billion||$560.94 million||45.01|
Tallgrass Energy pays an annual dividend of $1.99 per share and has a dividend yield of 8.0%. Tallgrass Energy pays out 261.8% 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 6.7% and pay out 139.1% of their earnings in the form of a dividend.
Volatility & Risk
Tallgrass Energy has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Tallgrass Energy’s competitors have a beta of 1.60, indicating that their average stock price is 60% more volatile than the S&P 500.
Insider and Institutional Ownership
39.4% of Tallgrass Energy shares are held by institutional investors. Comparatively, 55.3% of shares of all “Natural gas transmission” companies are held by institutional investors. 6.9% of shares of all “Natural gas transmission” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Tallgrass Energy and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tallgrass Energy Competitors||17.37%||14.39%||7.37%|
This is a summary of current ratings for Tallgrass Energy and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tallgrass Energy Competitors||414||1641||2167||79||2.44|
Tallgrass Energy presently has a consensus target price of $26.00, suggesting a potential upside of 4.75%. As a group, “Natural gas transmission” companies have a potential upside of 15.55%. Given Tallgrass Energy’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Tallgrass Energy has less favorable growth aspects than its competitors.
Tallgrass Energy competitors beat Tallgrass Energy on 13 of the 15 factors compared.
About Tallgrass Energy
Tallgrass Energy, LP, through its interests in Tallgrass Equity, LLC, provides crude oil transportation services to customers in Wyoming, Colorado, and the surrounding regions of the United States. The company operates through three segments: Natural Gas Transportation; Crude Oil Transportation; and Gathering, Processing & Terminalling. It also provides natural gas transportation and storage services for customers in the Rocky Mountain, Midwest, and Appalachian regions; natural gas and crude oil gathering and processing services for customers in Wyoming; and natural gas liquids (NGLs) transportation services in Northeast Colorado and Wyoming. In addition, the company offers water business services, including freshwater transportation, and produced water gathering and disposal in Colorado, Texas, and Wyoming; crude oil storage and terminalling services in Colorado; and marketing services for NGLs and crude oil. The company was formerly known as Tallgrass Energy GP, LP and changed its name to Tallgrass Energy, LP in June 2018. Tallgrass Energy, LP was founded in 2013 and is based in Leawood, Kansas.
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