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 $73.1B against $60.6B — 1.2× the size. Kinder Morgan, Inc. trades at the lower P/E: 21.9× against 28.0×. 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 (3.45% vs 1.53%). 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 21.92 28.05 12.77
P/S 4.24 3.77 2.36
P/B 2.31 16.63 2.09
Price to free cash flow 28.66 85.22 9.71
EV/EBITDA 14.06 14.99 8.30
EV/Sales 6.03 4.93 3.88
Earnings yield 4.56% 3.57% 7.15%
Free cash flow yield 3.49% 1.17% 6.86%

Profitability

Metric KMI TRGP Oil & Gas Midstream median
Gross margin 66.61% 43.19% 56.58%
Operating margin 29.05% 22.91% 34.18%
Net margin 19.31% 13.47% 22.50%
Free cash flow margin 14.78% 4.43% 13.70%
Return on equity 10.67% 69.32% 14.65%
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%) 15.60%
EPS growth (last fiscal year) 17.09% 47.91% (7.86%)
Revenue growth, 5-year CAGR 7.68% 15.57% 9.59%
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 3.45% 1.53% 4.54%
Payout ratio 0.76 0.43 0.76

Size

Metric KMI TRGP Oil & Gas Midstream median
Market cap 73.08b 60.59b 3.73b

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