Q: For a new position, which of these 2 would you choose and why? The P/E for ENB appears to be very high; is this an issue? Many thanks.
5i Research Answer:
On a forward basis, P/E of PPL is 15.6X and ENB 17X. ENB is more expensive largely due to its bigger size and dividend growth record. But ENB's yield is about 1% more. Neither is risk-free, but we would side with ENB for yield and for its backlog of projects and growth profile.