Enterprise Products Partners L.P. (EPD) vs Targa Resources, Inc. (TRGP)

Enterprise Products Partners L.P. and Targa Resources, Inc. are both Oil & Gas Midstream companies. Enterprise Products Partners L.P. is the larger, with a market value of $76.8B against $60.6B — 1.3× the size. Enterprise Products Partners L.P. trades at the lower P/E: 12.8× against 28.0×. Enterprise Products Partners L.P. grew revenue faster over the last twelve months: 6.78% against −1.97%. Targa Resources, Inc. has the higher net margin (13.5% vs 10.7%) and the higher return on invested capital (10.3% vs 7.68%). Both pay a dividend; Enterprise Products Partners L.P. yields more (6.00% vs 1.53%). Across the 23 metrics below, Enterprise Products Partners L.P. leads on 15 and Targa Resources, Inc. on 8.

Valuation

Metric EPD TRGP Oil & Gas Midstream median
P/E 12.77 28.05 12.77
P/S 1.36 3.77 2.36
P/B 2.56 16.63 2.09
Price to free cash flow 19.28 85.22 9.71
EV/EBITDA 10.58 14.99 8.30
EV/Sales 1.92 4.93 3.88
Earnings yield 7.83% 3.57% 7.15%
Free cash flow yield 5.19% 1.17% 6.86%

Profitability

Metric EPD TRGP Oil & Gas Midstream median
Gross margin 13.25% 43.19% 56.58%
Operating margin 13.43% 22.91% 34.18%
Net margin 10.68% 13.47% 22.50%
Free cash flow margin 7.06% 4.43% 13.70%
Return on equity 20.48% 69.32% 14.65%
Return on assets 7.84% 8.67% 5.00%
Return on invested capital 7.68% 10.31% 6.13%

Growth

Metric EPD TRGP Oil & Gas Midstream median
Revenue growth (TTM) 6.78% (1.97%) 15.60%
EPS growth (last fiscal year) (1.12%) 47.91% (7.86%)
Revenue growth, 5-year CAGR 14.10% 15.57% 9.59%
Net income growth, 5-year CAGR 8.80% 0.00% 0.00%

Health

Metric EPD TRGP Oil & Gas Midstream median
Debt to equity 1.07 5.16 0.78
Current ratio 0.93 0.77 1.19
Net debt to EBITDA 3.35 3.55 3.42

Dividend

Metric EPD TRGP Oil & Gas Midstream median
Dividend yield 6.00% 1.53% 4.54%
Payout ratio 0.77 0.43 0.76

Size

Metric EPD TRGP Oil & Gas Midstream median
Market cap 76.81b 60.59b 3.73b

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