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 $69.5B against $60.7B — 1.1× the size. Kinder Morgan, Inc. trades at the lower P/E: 19.7× against 26.5×. Kinder Morgan, Inc. grew revenue faster over the last twelve months: 12.5% against −1.97%. Kinder Morgan, Inc. has the higher net margin (19.3% vs 13.5%) and the lower return on invested capital (5.02% vs 10.3%). Both pay a dividend; Kinder Morgan, Inc. yields more (6.93% vs 2.27%). Across the 23 metrics below, Kinder Morgan, Inc. leads on 14 and Targa Resources, Inc. on 9.

Valuation

Metric KMI TRGP Oil & Gas Midstream median
P/E 19.71 26.49 13.19
P/S 3.81 3.56 2.60
P/B 2.08 15.71 2.08
Price to free cash flow 25.77 80.48 10.14
EV/EBITDA 13.06 14.36 8.11
EV/Sales 5.60 4.72 3.89
Earnings yield 5.07% 3.78% 6.83%
Free cash flow yield 3.88% 1.24% 6.94%

Profitability

Metric KMI TRGP Oil & Gas Midstream median
Gross margin 66.61% 43.19% 58.81%
Operating margin 29.05% 22.91% 32.14%
Net margin 19.31% 13.47% 21.16%
Free cash flow margin 14.78% 4.43% 10.15%
Return on equity 10.67% 69.32% 11.30%
Return on assets 4.74% 8.67% 5.00%
Return on invested capital 5.02% 10.31% 6.13%

Growth

Metric KMI TRGP Oil & Gas Midstream median
Revenue growth (TTM) 12.46% (1.97%) 15.44%
EPS growth (last fiscal year) 17.09% 47.91% —
Revenue growth, 5-year CAGR 7.68% 15.57% 8.96%
Net income growth, 5-year CAGR 91.39% 0.00% 0.00%

Health

Metric KMI TRGP Oil & Gas Midstream median
Debt to equity 0.98 5.16 0.78
Current ratio 0.46 0.77 1.19
Net debt to EBITDA 4.44 3.55 3.42

Dividend

Metric KMI TRGP Oil & Gas Midstream median
Dividend yield 6.93% 2.27% 7.29%
Payout ratio 1.00 — 0.64

Size

Metric KMI TRGP Oil & Gas Midstream median
Market cap 69.52b 60.72b 3.61b

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