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 $79.1B against $58.3B — 1.4× the size. Enterprise Products Partners L.P. trades at the lower P/E: 12.2× against 24.1×. Enterprise Products Partners L.P. grew revenue faster over the last twelve months: 21.5% against 4.67%. Both pay a dividend; Enterprise Products Partners L.P. yields more (6.04% vs 1.74%). Across the 20 metrics below, Enterprise Products Partners L.P. leads on 15 and Targa Resources, Inc. on 5.

Valuation

Metric EPD TRGP Oil & Gas Midstream median
P/E 12.17 24.11 11.68
P/S 1.23 3.22 2.39
P/B 2.54 14.79 1.68
Price to free cash flow 17.35 62.74 8.52
EV/EBITDA 10.58 13.40 9.03
EV/Sales 1.75 4.30 3.43
Earnings yield 8.22% 4.15% 7.78%
Free cash flow yield 5.77% 1.59% 7.11%

Profitability

Metric EPD TRGP Oil & Gas Midstream median
Gross margin 12.50% 41.82% 54.87%
Operating margin 12.67% 22.51% 34.73%
Net margin 0.00% 0.00% 20.12%
Free cash flow margin 14.45% 5.13% 14.43%
Return on equity 0.00% 0.00% 11.73%
Return on assets 0.00% 0.00% 4.43%
Return on invested capital 7.93% 10.82% 6.10%

Growth

Metric EPD TRGP Oil & Gas Midstream median
Revenue growth (TTM) 21.49% 4.67% 14.88%
EPS growth (last fiscal year) (1.12%) 47.91% (7.78%)
Revenue growth, 5-year CAGR 14.10% 15.57% 10.05%
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 5.01 0.77
Current ratio 0.93 0.74 1.19
Net debt to EBITDA 3.35 3.55 3.46

Dividend

Metric EPD TRGP Oil & Gas Midstream median
Dividend yield 6.04% 1.74% 4.94%
Payout ratio 0.74 0.42 0.73

Size

Metric EPD TRGP Oil & Gas Midstream median
Market cap 79.08b 58.29b 3.56b

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