Energy Transfer LP (ET) vs Kinder Morgan, Inc. (KMI)

Energy Transfer LP and Kinder Morgan, Inc. are both Oil & Gas Midstream companies. Energy Transfer LP and Kinder Morgan, Inc. are of similar size ($73.1B and $68.5B). Energy Transfer LP trades at the lower P/E: 13.8× against 21.9×. Energy Transfer LP grew revenue faster over the last twelve months: 33.3% against 12.5%. Kinder Morgan, Inc. has the higher net margin (19.3% vs 4.70%) and the lower return on invested capital (5.02% vs 5.72%). Both pay a dividend; Energy Transfer LP yields more (6.62% vs 3.45%). Across the 23 metrics below, Energy Transfer LP leads on 14 and Kinder Morgan, Inc. on 9.

Valuation

Metric ET KMI Oil & Gas Midstream median
P/E 13.82 21.92 12.77
P/S 0.65 4.24 2.36
P/B 1.48 2.31 2.09
Price to free cash flow 13.38 28.66 9.71
EV/EBITDA 8.14 14.06 8.30
EV/Sales 1.28 6.03 3.88
Earnings yield 7.23% 4.56% 7.15%
Free cash flow yield 7.47% 3.49% 6.86%

Profitability

Metric ET KMI Oil & Gas Midstream median
Gross margin 23.58% 66.61% 56.58%
Operating margin 10.04% 29.05% 34.18%
Net margin 4.70% 19.31% 22.50%
Free cash flow margin 4.87% 14.78% 13.70%
Return on equity 11.30% 10.67% 14.65%
Return on assets 3.70% 4.74% 5.00%
Return on invested capital 5.72% 5.02% 6.13%

Growth

Metric ET KMI Oil & Gas Midstream median
Revenue growth (TTM) 33.27% 12.46% 15.60%
EPS growth (last fiscal year) (5.47%) 17.09% (7.86%)
Revenue growth, 5-year CAGR 17.04% 7.68% 9.59%
Net income growth, 5-year CAGR 0.00% 91.39% 0.00%

Health

Metric ET KMI Oil & Gas Midstream median
Debt to equity 1.35 0.98 0.78
Current ratio 1.16 0.46 1.19
Net debt to EBITDA 4.56 4.44 3.42

Dividend

Metric ET KMI Oil & Gas Midstream median
Dividend yield 6.62% 3.45% 4.54%
Payout ratio 0.92 0.76 0.76

Size

Metric ET KMI Oil & Gas Midstream median
Market cap 68.45b 73.08b 3.73b

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