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 ($60.6B and $57.7B). Cheniere Energy, Inc. trades at the lower P/E: 21.4× against 28.0×. 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 (1.53% vs 0.77%). 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 21.44 28.05 12.77
P/S 2.81 3.77 2.36
P/B 5.26 16.63 2.09
Price to free cash flow 22.31 85.22 9.71
EV/EBITDA 10.50 14.99 8.30
EV/Sales 3.86 4.93 3.88
Earnings yield 4.66% 3.57% 7.15%
Free cash flow yield 4.48% 1.17% 6.86%

Profitability

Metric LNG TRGP Oil & Gas Midstream median
Gross margin 38.53% 43.19% 56.58%
Operating margin 29.89% 22.91% 34.18%
Net margin 13.50% 13.47% 22.50%
Free cash flow margin 12.61% 4.43% 13.70%
Return on equity 25.52% 69.32% 14.65%
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%) 15.60%
EPS growth (last fiscal year) 69.93% 47.91% (7.86%)
Revenue growth, 5-year CAGR 16.38% 15.57% 9.59%
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 0.77% 1.53% 4.54%
Payout ratio 0.17 0.43 0.76

Size

Metric LNG TRGP Oil & Gas Midstream median
Market cap 57.65b 60.59b 3.73b

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