Archrock Partners (NASDAQ:APLP) and TC Pipelines (NYSE:TCP) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
This is a summary of recent ratings for Archrock Partners and TC Pipelines, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider and Institutional Ownership
44.4% of Archrock Partners shares are owned by institutional investors. Comparatively, 63.0% of TC Pipelines shares are owned by institutional investors. 0.4% of Archrock Partners shares are owned by insiders. Comparatively, 0.1% of TC Pipelines shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Archrock Partners and TC Pipelines’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Archrock Partners pays an annual dividend of $1.14 per share. TC Pipelines pays an annual dividend of $2.60 per share and has a dividend yield of 8.0%. TC Pipelines pays out 82.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TC Pipelines has raised its dividend for 9 consecutive years. TC Pipelines is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Archrock Partners and TC Pipelines’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TC Pipelines||$422.00 million||5.47||$252.00 million||$3.16||10.24|
TC Pipelines has higher revenue and earnings than Archrock Partners.
TC Pipelines beats Archrock Partners on 7 of the 12 factors compared between the two stocks.
Archrock Partners Company Profile
Archrock Partners, L.P., together with its subsidiaries, provides natural gas contract operations services to customers in the United States. The company's contract operations services primarily include designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining equipment to provide natural gas compression services to its customers. It serves companies engaged in various aspects of the oil and natural gas industry, including oil and natural gas producers, processors, gatherers, transporters, and storage providers. The company markets its services through sales and field service personnel. Archrock General Partner, L.P. operates as the general partner of the company. The company was formerly known as Exterran Partners, L.P. and changed its name to Archrock Partners, L.P. in November 2015. Archrock Partners, L.P. was founded in 2006 and is based in Houston, Texas.
TC Pipelines Company Profile
TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The company has interests in eight natural gas interstate pipeline systems that transport approximately 10.4 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern, and Eastern United States. It serves large utilities, local distribution companies, natural gas marketers, producing companies, and other interstate pipelines, including affiliates. TC PipeLines GP, Inc. operates as a general partner of the company. TC PipeLines, LP was founded in 1998 and is based in Houston, Texas.
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