Cheniere Energy, Inc. (LNG) vs Targa Resources, Inc. (TRGP)

Cheniere Energy, Inc. and Targa Resources, Inc. are both Oil & Gas Midstream companies. Cheniere Energy, Inc. and Targa Resources, Inc. are of similar size ($60.7B and $56.8B). Cheniere Energy, Inc. trades at the lower P/E: 19.9× against 26.5×. Cheniere Energy, Inc. grew revenue faster over the last twelve months: 17.5% against −1.97%. Cheniere Energy, Inc. has the higher net margin (13.5% vs 13.5%) and the higher return on invested capital (11.8% vs 10.3%). Both pay a dividend; Targa Resources, Inc. yields more (2.27% vs 1.04%). Across the 22 metrics below, Cheniere Energy, Inc. leads on 18 and Targa Resources, Inc. on 4.

Valuation

Metric LNG TRGP Oil & Gas Midstream median
P/E 19.89 26.49 13.19
P/S 2.61 3.56 2.60
P/B 4.88 15.71 2.08
Price to free cash flow 20.70 80.48 10.14
EV/EBITDA 9.95 14.36 8.11
EV/Sales 3.66 4.72 3.89
Earnings yield 5.03% 3.78% 6.83%
Free cash flow yield 4.83% 1.24% 6.94%

Profitability

Metric LNG TRGP Oil & Gas Midstream median
Gross margin 38.53% 43.19% 58.81%
Operating margin 29.89% 22.91% 32.14%
Net margin 13.50% 13.47% 21.16%
Free cash flow margin 12.61% 4.43% 10.15%
Return on equity 25.52% 69.32% 11.30%
Return on assets 6.27% 8.67% 5.00%
Return on invested capital 11.80% 10.31% 6.13%

Growth

Metric LNG TRGP Oil & Gas Midstream median
Revenue growth (TTM) 17.54% (1.97%) 15.44%
EPS growth (last fiscal year) 69.93% 47.91% —
Revenue growth, 5-year CAGR 16.38% 15.57% 8.96%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LNG TRGP Oil & Gas Midstream median
Debt to equity 2.09 5.16 0.78
Current ratio 0.87 0.77 1.19
Net debt to EBITDA 2.03 3.55 3.42

Dividend

Metric LNG TRGP Oil & Gas Midstream median
Dividend yield 1.04% 2.27% 7.29%
Payout ratio 0.04 — 0.64

Size

Metric LNG TRGP Oil & Gas Midstream median
Market cap 56.83b 60.72b 3.61b

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