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 $66.1B against $58.3B — 1.1× the size. Energy Transfer LP trades at the lower P/E: 12.6× against 24.1×. Energy Transfer LP grew revenue faster over the last twelve months: 56.1% against 4.67%. Energy Transfer LP has the higher net margin (4.20% vs 0.00%) and the lower return on invested capital (6.07% vs 10.8%). Both pay a dividend; Energy Transfer LP yields more (8.78% vs 1.74%). Across the 22 metrics below, Energy Transfer LP leads on 17 and Targa Resources, Inc. on 5.

Valuation

Metric ET TRGP Oil & Gas Midstream median
P/E 12.64 24.11 11.68
P/S 0.53 3.22 2.39
P/B 1.40 14.79 1.68
Price to free cash flow 9.91 62.74 8.52
EV/EBITDA 7.95 13.40 9.03
EV/Sales 1.08 4.30 3.43
Earnings yield 7.91% 4.15% 7.78%
Free cash flow yield 10.09% 1.59% 7.11%

Profitability

Metric ET TRGP Oil & Gas Midstream median
Gross margin 21.28% 41.82% 54.87%
Operating margin 9.17% 22.51% 34.73%
Net margin 4.20% 0.00% 20.12%
Free cash flow margin 10.90% 5.13% 14.43%
Return on equity 11.73% 0.00% 11.73%
Return on assets 3.75% 0.00% 4.43%
Return on invested capital 6.07% 10.82% 6.10%

Growth

Metric ET TRGP Oil & Gas Midstream median
Revenue growth (TTM) 56.13% 4.67% 14.88%
EPS growth (last fiscal year) (5.47%) 47.91% (7.78%)
Revenue growth, 5-year CAGR 17.04% 15.57% 10.05%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ET TRGP Oil & Gas Midstream median
Debt to equity 1.39 5.01 0.77
Current ratio 1.16 0.74 1.19
Net debt to EBITDA 4.56 3.55 3.46

Dividend

Metric ET TRGP Oil & Gas Midstream median
Dividend yield 8.78% 1.74% 4.94%
Payout ratio 1.11 0.42 0.73

Size

Metric ET TRGP Oil & Gas Midstream median
Market cap 66.08b 58.29b 3.56b

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