RE:RE:RE:RE:ALA vs. CPXJohnwith30years wrote: A much kinder and gentler and more informative post than mine... I have done the detailed analysis for ALA but thanks for checking on CPX. I just get a bit annoyed when others look through the rear view mirror. I think a more interesting question is to try to find direct comparisons with ALA but because of its hybrid mix I find it difficult. For example TD calls FTS their outperform utility even though it is very soft at the moment. But then FTS doesn't have a kicker like gas exports but certainly a long stable trrack record of increasing dividends but going forward I wonder which will do better FTS or ALA and I also am trying to gage the risk factor on ENB given the politics around line 5 - Any thoughts?
Just going by numbers:
FTS has a rate base increase planned of 6.5% in the next three year (below Altagas), a P/E ratio of 19 and an approx 8.44x cashflow ratio (they don't provide adj cash flow). They pay about 33% of their cash flow in dividends.
ENB doesn't provide adj figures either, so I have adjusted them by taking out one time items... P/E of 17.7, approx 8.8x cashflow ratio. They pay about 69% of their cash flow in dividends (common shares only). The growth is hard to evaluate since they have many projects in play and the current litigation.
In terms of risk, I'd rate it as lowest risk being Fortis, then Altagas and Enbridge at higher risk.
Overall, Altagas is the cheapest in terms of ratios for PE and cashflows. Altagas has better short term growth profile than Fortis. It is a bit riskier than Fortis mostly due to their midstream assets and higher leveraged balance sheet, although the way they handle those (long term contracts which are not commodity based, mostly and they renewed a lot of debt at basement interest rates), I think Altagas is still on the safer side. Enbridge is riskier and I don't see their numbers justifying that. Only good thing is a juicy dividend, although it comes at the cost of using more of their cash flows (then Altagas and Fortis).