Enterprise Products Partners L.P. (EPD) vs Kinder Morgan, Inc. (KMI)

Enterprise Products Partners L.P. and Kinder Morgan, Inc. are both Oil & Gas Midstream companies. Enterprise Products Partners L.P. is the larger, with a market value of $80.5B against $69.5B — 1.2× the size. Enterprise Products Partners L.P. trades at the lower P/E: 12.8× against 19.7×. Kinder Morgan, Inc. grew revenue faster over the last twelve months: 12.5% against 6.78%. Kinder Morgan, Inc. has the higher net margin (19.3% vs 10.7%) and the lower return on invested capital (5.02% vs 7.68%). Both pay a dividend; Enterprise Products Partners L.P. yields more (8.06% vs 6.93%). Across the 23 metrics below, Enterprise Products Partners L.P. leads on 14 and Kinder Morgan, Inc. on 9.

Valuation

Metric EPD KMI Oil & Gas Midstream median
P/E 12.76 19.71 13.19
P/S 1.36 3.81 2.60
P/B 2.56 2.08 2.08
Price to free cash flow 19.27 25.77 10.14
EV/EBITDA 10.58 13.06 8.11
EV/Sales 1.92 5.60 3.89
Earnings yield 7.84% 5.07% 6.83%
Free cash flow yield 5.19% 3.88% 6.94%

Profitability

Metric EPD KMI Oil & Gas Midstream median
Gross margin 13.25% 66.61% 58.81%
Operating margin 13.43% 29.05% 32.14%
Net margin 10.68% 19.31% 21.16%
Free cash flow margin 7.06% 14.78% 10.15%
Return on equity 20.48% 10.67% 11.30%
Return on assets 7.84% 4.74% 5.00%
Return on invested capital 7.68% 5.02% 6.13%

Growth

Metric EPD KMI Oil & Gas Midstream median
Revenue growth (TTM) 6.78% 12.46% 15.44%
EPS growth (last fiscal year) (1.12%) 17.09% —
Revenue growth, 5-year CAGR 14.10% 7.68% 8.96%
Net income growth, 5-year CAGR 8.80% 91.39% 0.00%

Health

Metric EPD KMI Oil & Gas Midstream median
Debt to equity 1.07 0.98 0.78
Current ratio 0.93 0.46 1.19
Net debt to EBITDA 3.35 4.44 3.42

Dividend

Metric EPD KMI Oil & Gas Midstream median
Dividend yield 8.06% 6.93% 7.29%
Payout ratio — 1.00 0.64

Size

Metric EPD KMI Oil & Gas Midstream median
Market cap 80.48b 69.52b 3.61b

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