TC PipeLines, (NYSE: TCP) and Boardwalk Pipeline Partners L.P. (NYSE:BWP) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitabiliy, earnings and valuation.
Insider and Institutional Ownership
60.4% of TC PipeLines, shares are held by institutional investors. Comparatively, 99.2% of Boardwalk Pipeline Partners L.P. shares are held by institutional investors. 0.1% of TC PipeLines, shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations for TC PipeLines, and Boardwalk Pipeline Partners L.P., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TC PipeLines, | 1 | 3 | 1 | 0 | 2.00 |
| Boardwalk Pipeline Partners L.P. | 1 | 2 | 2 | 0 | 2.20 |
TC PipeLines, currently has a consensus price target of $61.25, suggesting a potential upside of 8.22%. Boardwalk Pipeline Partners L.P. has a consensus price target of $22.75, suggesting a potential upside of 32.27%. Given Boardwalk Pipeline Partners L.P.’s stronger consensus rating and higher possible upside, analysts plainly believe Boardwalk Pipeline Partners L.P. is more favorable than TC PipeLines,.
Risk and Volatility
TC PipeLines, has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Boardwalk Pipeline Partners L.P. has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Valuation and Earnings
This table compares TC PipeLines, and Boardwalk Pipeline Partners L.P.’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| TC PipeLines, | $477.00 million | 8.18 | $399.00 million | $3.16 | 17.91 |
| Boardwalk Pipeline Partners L.P. | $1.33 billion | 3.24 | $823.80 million | $1.27 | 13.54 |
Boardwalk Pipeline Partners L.P. has higher revenue and earnings than TC PipeLines,. Boardwalk Pipeline Partners L.P. is trading at a lower price-to-earnings ratio than TC PipeLines,, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TC PipeLines, and Boardwalk Pipeline Partners L.P.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TC PipeLines, | 64.17% | 19.04% | 7.29% |
| Boardwalk Pipeline Partners L.P. | 24.11% | 7.10% | 3.71% |
Dividends
TC PipeLines, pays an annual dividend of $3.76 per share and has a dividend yield of 6.6%. Boardwalk Pipeline Partners L.P. pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. TC PipeLines, pays out 119.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boardwalk Pipeline Partners L.P. pays out 31.5% of its earnings in the form of a dividend. TC PipeLines, has increased its dividend for 7 consecutive years. TC PipeLines, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
TC PipeLines, beats Boardwalk Pipeline Partners L.P. on 10 of the 17 factors compared between the two stocks.
TC PipeLines, Company Profile
TC PipeLines, LP is a master limited partnership. The Company acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company’s pipeline systems transport natural gas in the United States. As of December 31, 2016, the Company had four pipelines and equity ownership interests in three natural gas interstate pipeline systems that are collectively designed to transport approximately 9.1 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. The Company’s pipeline systems include Gas Transmission Northwest LLC (GTN), Bison Pipeline LLC (Bison), North Baja Pipeline, LLC (North Baja), Tuscarora Gas Transmission Company (Tuscarora), Northern Border Pipeline Company (Northern Border), Portland Natural Gas Transmission System (PNGTS), and Great Lakes Gas Transmission Limited Partnership (Great Lakes).
Boardwalk Pipeline Partners L.P. Company Profile
Boardwalk Pipeline Partners, LP is a limited partnership company. The Company’s business includes integrated natural gas and natural gas liquids, and other hydrocarbons (referred to together as NGLs) pipeline and storage systems. The Company is engaged in the operation of interstate natural gas and NGLs pipeline systems, and integrated storage facilities, including interstate natural gas pipeline systems located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, and its NGLs pipelines and storage facilities in Louisiana and Texas. The Company conducts business through its subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines), and its subsidiaries, Gulf South Pipeline Company, LP, Texas Gas Transmission, LLC, Gulf Crossing Pipeline Company LLC, Boardwalk Louisiana Midstream, LLC, Boardwalk Petrochemical Pipeline, LLC and Boardwalk Field Services, LLC.
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