TC Energy (NYSE:TRP) versus OPAL Fuels (NASDAQ:OPAL) Head-To-Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OPAL Fuels	-1.02%	-1.84%	-0.37%
TC Energy	28.98%	11.22%	3.31%

Insider & Institutional Ownership

12.2% of OPAL Fuels shares are held by institutional investors. Comparatively, 83.1% of TC Energy shares are held by institutional investors. 84.6% of OPAL Fuels shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares OPAL Fuels and TC Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OPAL Fuels	$299.97 million	1.38	$11.03 million	$0.02	119.00
TC Energy	$14.65 billion	3.92	$3.43 billion	$2.32	23.78

TC Energy has higher revenue and earnings than OPAL Fuels. TC Energy is trading at a lower price-to-earnings ratio than OPAL Fuels, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for OPAL Fuels and TC Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OPAL Fuels	2	4	0	0	1.67
TC Energy	0	4	6	2	2.83

OPAL Fuels currently has a consensus price target of $2.81, indicating a potential upside of 18.17%. TC Energy has a consensus price target of $77.00, indicating a potential upside of 39.57%. Given TC Energy’s stronger consensus rating and higher possible upside, analysts clearly believe TC Energy is more favorable than OPAL Fuels.

Risk & Volatility

OPAL Fuels has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, TC Energy has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Summary

TC Energy beats OPAL Fuels on 12 of the 15 factors compared between the two stocks.

About OPAL Fuels

OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.

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.