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 $80.5B against $60.7B — 1.3× the size. Enterprise Products Partners L.P. trades at the lower P/E: 12.8× against 26.5×. 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 (8.06% vs 2.27%). 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 12.76 26.49 13.19
P/S 1.36 3.56 2.60
P/B 2.56 15.71 2.08
Price to free cash flow 19.27 80.48 10.14
EV/EBITDA 10.58 14.36 8.11
EV/Sales 1.92 4.72 3.89
Earnings yield 7.84% 3.78% 6.83%
Free cash flow yield 5.19% 1.24% 6.94%

Profitability

Metric EPD TRGP Oil & Gas Midstream median
Gross margin 13.25% 43.19% 58.81%
Operating margin 13.43% 22.91% 32.14%
Net margin 10.68% 13.47% 21.16%
Free cash flow margin 7.06% 4.43% 10.15%
Return on equity 20.48% 69.32% 11.30%
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%) 15.44%
EPS growth (last fiscal year) (1.12%) 47.91% —
Revenue growth, 5-year CAGR 14.10% 15.57% 8.96%
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 8.06% 2.27% 7.29%
Payout ratio — — 0.64

Size

Metric EPD TRGP Oil & Gas Midstream median
Market cap 80.48b 60.72b 3.61b

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