TC Energy (NYSE:TRP) versus Brookfield Renewable (NYSE:BEPC) Head to Head Analysis

TC Energy (NYSE:TRP) and Brookfield Renewable (NYSE:BEPC) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for TC Energy and Brookfield Renewable, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TC Energy	0	6	7	1	2.64
Brookfield Renewable	2	1	1	0	1.75

TC Energy currently has a consensus target price of $78.50, suggesting a potential upside of 14.73%. Brookfield Renewable has a consensus target price of $42.33, suggesting a potential upside of 18.32%. Given Brookfield Renewable’s higher probable upside, analysts plainly believe Brookfield Renewable is more favorable than TC Energy.

Earnings and Valuation

This table compares TC Energy and Brookfield Renewable”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TC Energy	$15.48 billion	4.61	$2.52 billion	$2.30	29.75
Brookfield Renewable	$3.70 billion	1.44	-$2.34 billion	N/A	N/A

TC Energy has higher revenue and earnings than Brookfield Renewable.

Profitability

This table compares TC Energy and Brookfield Renewable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TC Energy	22.22%	10.74%	3.14%
Brookfield Renewable	-62.40%	-24.65%	-4.95%

Institutional and Insider Ownership

83.1% of TC Energy shares are held by institutional investors. Comparatively, 75.1% of Brookfield Renewable shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

TC Energy pays an annual dividend of $2.47 per share and has a dividend yield of 3.6%. Brookfield Renewable pays an annual dividend of $1.56 per share and has a dividend yield of 4.4%. TC Energy pays out 107.4% 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 Energy has raised its dividend for 1 consecutive years and Brookfield Renewable has raised its dividend for 1 consecutive years.

Risk & Volatility

TC Energy has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Brookfield Renewable has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Summary

TC Energy beats Brookfield Renewable on 10 of the 14 factors compared between the two stocks.

About TC Energy

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 93,600 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, Texas, and the United States Gulf Coast. Further, the company owns or has interests in power generation facilities with approximately 4,600 megawatts; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage facilities in in Alberta, Ontario, Québec, and New Brunswick. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was founded in 1951 and is headquartered in Calgary, Canada.

About Brookfield Renewable

Brookfield Renewable Corporation owns and operates a portfolio of renewable power and sustainable solution assets primarily in the United States, Europe, Colombia, and Brazil. It operates hydroelectric, wind, solar, and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was incorporated in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.