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 $69.5B against $56.8B — 1.2× the size. Kinder Morgan, Inc. trades at the lower P/E: 19.7× against 19.9×. Cheniere Energy, Inc. grew revenue faster over the last twelve months: 17.5% against 12.5%. Kinder Morgan, Inc. has the higher net margin (19.3% vs 13.5%) and the lower return on invested capital (5.02% vs 11.8%). Both pay a dividend; Kinder Morgan, Inc. yields more (6.93% vs 1.04%). Across the 23 metrics below, Cheniere Energy, Inc. leads on 14 and Kinder Morgan, Inc. on 9.

Valuation

Metric KMI LNG Oil & Gas Midstream median
P/E 19.71 19.89 13.19
P/S 3.81 2.61 2.60
P/B 2.08 4.88 2.08
Price to free cash flow 25.77 20.70 10.14
EV/EBITDA 13.06 9.95 8.11
EV/Sales 5.60 3.66 3.89
Earnings yield 5.07% 5.03% 6.83%
Free cash flow yield 3.88% 4.83% 6.94%

Profitability

Metric KMI LNG Oil & Gas Midstream median
Gross margin 66.61% 38.53% 58.81%
Operating margin 29.05% 29.89% 32.14%
Net margin 19.31% 13.50% 21.16%
Free cash flow margin 14.78% 12.61% 10.15%
Return on equity 10.67% 25.52% 11.30%
Return on assets 4.74% 6.27% 5.00%
Return on invested capital 5.02% 11.80% 6.13%

Growth

Metric KMI LNG Oil & Gas Midstream median
Revenue growth (TTM) 12.46% 17.54% 15.44%
EPS growth (last fiscal year) 17.09% 69.93% —
Revenue growth, 5-year CAGR 7.68% 16.38% 8.96%
Net income growth, 5-year CAGR 91.39% 0.00% 0.00%

Health

Metric KMI LNG Oil & Gas Midstream median
Debt to equity 0.98 2.09 0.78
Current ratio 0.46 0.87 1.19
Net debt to EBITDA 4.44 2.03 3.42

Dividend

Metric KMI LNG Oil & Gas Midstream median
Dividend yield 6.93% 1.04% 7.29%
Payout ratio 1.00 0.04 0.64

Size

Metric KMI LNG Oil & Gas Midstream median
Market cap 69.52b 56.83b 3.61b

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