Contrasting Tallgrass Energy (TGE) & Its Rivals

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Tallgrass Energy (NYSE: TGE) is one of 34 public companies in the “Natural gas transmission” industry, but how does it contrast to its rivals? We will compare Tallgrass Energy to related companies based on the strength of its profitability, dividends, institutional ownership, analyst recommendations, risk, valuation and earnings.

Dividends

Tallgrass Energy pays an annual dividend of $1.99 per share and has a dividend yield of 7.8%. 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.

Valuation and Earnings

This table compares Tallgrass Energy and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tallgrass Energy $655.90 million -$128.72 million 33.68
Tallgrass Energy Competitors $5.28 billion $560.94 million 45.37

Tallgrass Energy’s rivals have higher revenue and earnings than Tallgrass Energy. Tallgrass Energy 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tallgrass Energy and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tallgrass Energy 0 2 1 0 2.33
Tallgrass Energy Competitors 415 1645 2173 79 2.44

Tallgrass Energy currently has a consensus target price of $26.00, indicating a potential upside of 1.56%. As a group, “Natural gas transmission” companies have a potential downside of 62.18%. Given Tallgrass Energy’s higher probable upside, research analysts clearly believe Tallgrass Energy is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Tallgrass Energy -18.21% 2.03% 0.87%
Tallgrass Energy Competitors 17.37% 14.39% 7.37%

Institutional and Insider Ownership

39.4% of Tallgrass Energy shares are owned by institutional investors. Comparatively, 55.3% of shares of all “Natural gas transmission” companies are owned by institutional investors. 6.9% of shares of all “Natural gas transmission” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Tallgrass Energy has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Tallgrass Energy’s rivals have a beta of 1.60, indicating that their average share price is 60% more volatile than the S&P 500.

Summary

Tallgrass Energy rivals beat Tallgrass Energy on 12 of the 15 factors compared.

Tallgrass Energy Company Profile

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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