Financial Survey: Kodiak Gas Services (NYSE:KGS) vs. TC Energy (NYSE:TRP)

TC Energy (NYSE:TRPGet Free Report) and Kodiak Gas Services (NYSE:KGSGet Free Report) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Insider and Institutional Ownership

73.7% of TC Energy shares are owned by institutional investors. Comparatively, 23.5% of Kodiak Gas Services shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TC Energy and Kodiak Gas Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TC Energy 1 5 5 0 2.36
Kodiak Gas Services 0 1 6 0 2.86

TC Energy presently has a consensus target price of $48.83, suggesting a potential upside of 27.45%. Kodiak Gas Services has a consensus target price of $23.57, suggesting a potential downside of 3.47%. Given TC Energy’s higher probable upside, research analysts clearly believe TC Energy is more favorable than Kodiak Gas Services.

Profitability

This table compares TC Energy and Kodiak Gas Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TC Energy 0.10% 18.19% 3.74%
Kodiak Gas Services N/A N/A N/A

Valuation & Earnings

This table compares TC Energy and Kodiak Gas Services’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TC Energy $11.52 billion 3.33 $575.36 million ($0.06) -638.58
Kodiak Gas Services $804.18 million 2.35 $106.26 million N/A N/A

TC Energy has higher revenue and earnings than Kodiak Gas Services.

Dividends

TC Energy pays an annual dividend of $2.81 per share and has a dividend yield of 7.3%. Kodiak Gas Services pays an annual dividend of $1.52 per share and has a dividend yield of 6.2%. TC Energy pays out -4,683.3% of its earnings in the form of a dividend.

Summary

TC Energy beats Kodiak Gas Services on 10 of the 12 factors compared between the two stocks.

About TC Energy

(Get Free Report)

TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,700 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 532 billion cubic feet. In addition, it has approximately 4,900 kilometers of liquids pipeline system that connects Alberta crude oil pipeline to refining markets in Illinois, Oklahoma, and Texas. Further, the company owns or has interests in seven power generation facilities with a combined capacity of approximately 4,300 megawatts that are powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Qu├ębec, and New Brunswick; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage capacity in Alberta. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.

About Kodiak Gas Services

(Get Free Report)

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is based in Montgomery, Texas.

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