Energy Transfer LP (ET) vs Targa Resources, Inc. (TRGP)

Energy Transfer LP and Targa Resources, Inc. are both Oil & Gas Midstream companies. Energy Transfer LP is the larger, with a market value of $68.5B against $60.6B — 1.1× the size. Energy Transfer LP trades at the lower P/E: 13.8× against 28.0×. Energy Transfer LP grew revenue faster over the last twelve months: 33.3% against −1.97%. Targa Resources, Inc. has the higher net margin (13.5% vs 4.70%) and the higher return on invested capital (10.3% vs 5.72%). Both pay a dividend; Energy Transfer LP yields more (6.62% vs 1.53%). Across the 22 metrics below, Energy Transfer LP leads on 14 and Targa Resources, Inc. on 8.

Valuation

Metric ET TRGP Oil & Gas Midstream median
P/E 13.82 28.05 12.77
P/S 0.65 3.77 2.36
P/B 1.48 16.63 2.09
Price to free cash flow 13.38 85.22 9.71
EV/EBITDA 8.14 14.99 8.30
EV/Sales 1.28 4.93 3.88
Earnings yield 7.23% 3.57% 7.15%
Free cash flow yield 7.47% 1.17% 6.86%

Profitability

Metric ET TRGP Oil & Gas Midstream median
Gross margin 23.58% 43.19% 56.58%
Operating margin 10.04% 22.91% 34.18%
Net margin 4.70% 13.47% 22.50%
Free cash flow margin 4.87% 4.43% 13.70%
Return on equity 11.30% 69.32% 14.65%
Return on assets 3.70% 8.67% 5.00%
Return on invested capital 5.72% 10.31% 6.13%

Growth

Metric ET TRGP Oil & Gas Midstream median
Revenue growth (TTM) 33.27% (1.97%) 15.60%
EPS growth (last fiscal year) (5.47%) 47.91% (7.86%)
Revenue growth, 5-year CAGR 17.04% 15.57% 9.59%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ET TRGP Oil & Gas Midstream median
Debt to equity 1.35 5.16 0.78
Current ratio 1.16 0.77 1.19
Net debt to EBITDA 4.56 3.55 3.42

Dividend

Metric ET TRGP Oil & Gas Midstream median
Dividend yield 6.62% 1.53% 4.54%
Payout ratio 0.92 0.43 0.76

Size

Metric ET TRGP Oil & Gas Midstream median
Market cap 68.45b 60.59b 3.73b

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