Kinder Morgan, Inc. (KMI) vs Cheniere Energy, Inc. (LNG)

Kinder Morgan, Inc. and Cheniere Energy, Inc. are both Oil & Gas Midstream companies. Kinder Morgan, Inc. is the larger, with a market value of $67.3B against $57.1B — 1.2× the size. Cheniere Energy, Inc. trades at the lower P/E: 17.4× against 18.5×. Cheniere Energy, Inc. grew revenue faster over the last twelve months: 22.5% against 11.7%. Kinder Morgan, Inc. has the higher net margin (19.6% vs 13.0%) and the lower return on invested capital (5.11% vs 12.0%). Both pay a dividend; Kinder Morgan, Inc. yields more (3.95% vs 0.80%). Across the 23 metrics below, Cheniere Energy, Inc. leads on 16 and Kinder Morgan, Inc. on 7.

Valuation

Metric KMI LNG Oil & Gas Midstream median
P/E 18.52 17.45 11.80
P/S 3.64 2.47 2.38
P/B 2.04 4.79 1.65
Price to free cash flow 25.24 15.15 7.76
EV/EBITDA 12.66 9.84 7.88
EV/Sales 5.39 3.41 3.36
Earnings yield 5.40% 5.73% 7.98%
Free cash flow yield 3.96% 6.60% 7.23%

Profitability

Metric KMI LNG Oil & Gas Midstream median
Gross margin 66.38% 36.44% 55.22%
Operating margin 28.97% 28.08% 35.83%
Net margin 19.64% 13.03% 20.12%
Free cash flow margin 14.43% 16.31% 14.43%
Return on equity 11.11% 25.97% 14.03%
Return on assets 4.88% 6.44% 4.62%
Return on invested capital 5.11% 12.04% 6.10%

Growth

Metric KMI LNG Oil & Gas Midstream median
Revenue growth (TTM) 11.74% 22.47% 15.70%
EPS growth (last fiscal year) 17.09% 69.93% (7.78%)
Revenue growth, 5-year CAGR 7.68% 16.38% 10.05%
Net income growth, 5-year CAGR 91.39% 0.00% 0.00%

Health

Metric KMI LNG Oil & Gas Midstream median
Debt to equity 1.01 2.00 0.77
Current ratio 0.67 0.90 1.16
Net debt to EBITDA 4.44 2.03 3.46

Dividend

Metric KMI LNG Oil & Gas Midstream median
Dividend yield 3.95% 0.80% 5.03%
Payout ratio 0.73 0.14 0.73

Size

Metric KMI LNG Oil & Gas Midstream median
Market cap 67.25b 57.09b 3.30b

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