Kinder Morgan, Inc. (KMI) vs Targa Resources, Inc. (TRGP)

Kinder Morgan, Inc. and Targa Resources, Inc. are both Oil & Gas Midstream companies. Kinder Morgan, Inc. is the larger, with a market value of $67.3B against $58.3B — 1.2× the size. Kinder Morgan, Inc. trades at the lower P/E: 18.7× against 24.1×. Kinder Morgan, Inc. grew revenue faster over the last twelve months: 11.7% against 4.67%. Kinder Morgan, Inc. has the higher net margin (19.6% vs 0.00%) and the lower return on invested capital (5.11% vs 10.8%). Both pay a dividend; Kinder Morgan, Inc. yields more (3.91% vs 1.74%). Across the 23 metrics below, Kinder Morgan, Inc. leads on 16 and Targa Resources, Inc. on 7.

Valuation

Metric KMI TRGP Oil & Gas Midstream median
P/E 18.72 24.11 11.68
P/S 3.68 3.22 2.39
P/B 2.06 14.79 1.68
Price to free cash flow 25.51 62.74 8.52
EV/EBITDA 12.75 13.40 9.03
EV/Sales 5.43 4.30 3.43
Earnings yield 5.34% 4.15% 7.78%
Free cash flow yield 3.92% 1.59% 7.11%

Profitability

Metric KMI TRGP Oil & Gas Midstream median
Gross margin 66.38% 41.82% 54.87%
Operating margin 28.97% 22.51% 34.73%
Net margin 19.64% 0.00% 20.12%
Free cash flow margin 14.43% 5.13% 14.43%
Return on equity 11.11% 0.00% 11.73%
Return on assets 4.88% 0.00% 4.43%
Return on invested capital 5.11% 10.82% 6.10%

Growth

Metric KMI TRGP Oil & Gas Midstream median
Revenue growth (TTM) 11.74% 4.67% 14.88%
EPS growth (last fiscal year) 17.09% 47.91% (7.78%)
Revenue growth, 5-year CAGR 7.68% 15.57% 10.05%
Net income growth, 5-year CAGR 91.39% 0.00% 0.00%

Health

Metric KMI TRGP Oil & Gas Midstream median
Debt to equity 1.01 5.01 0.77
Current ratio 0.67 0.74 1.19
Net debt to EBITDA 4.44 3.55 3.46

Dividend

Metric KMI TRGP Oil & Gas Midstream median
Dividend yield 3.91% 1.74% 4.94%
Payout ratio 0.73 0.42 0.73

Size

Metric KMI TRGP Oil & Gas Midstream median
Market cap 67.25b 58.29b 3.56b

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