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 ($58.3B and $57.1B). Cheniere Energy, Inc. trades at the lower P/E: 19.4× against 24.1×. Cheniere Energy, Inc. grew revenue faster over the last twelve months: 22.5% against 4.67%. Cheniere Energy, Inc. has the higher net margin (13.0% vs 0.00%) and the higher return on invested capital (12.0% vs 10.8%). Both pay a dividend; Targa Resources, Inc. yields more (1.74% vs 0.79%). Across the 22 metrics below, Cheniere Energy, Inc. leads on 20 and Targa Resources, Inc. on 2.

Valuation

Metric LNG TRGP Oil & Gas Midstream median
P/E 19.44 24.11 11.68
P/S 2.49 3.22 2.39
P/B 4.83 14.79 1.68
Price to free cash flow 15.26 62.74 8.52
EV/EBITDA 9.89 13.40 9.03
EV/Sales 3.43 4.30 3.43
Earnings yield 5.14% 4.15% 7.78%
Free cash flow yield 6.55% 1.59% 7.11%

Profitability

Metric LNG TRGP Oil & Gas Midstream median
Gross margin 36.44% 41.82% 54.87%
Operating margin 28.08% 22.51% 34.73%
Net margin 13.03% 0.00% 20.12%
Free cash flow margin 16.31% 5.13% 14.43%
Return on equity 25.97% 0.00% 11.73%
Return on assets 6.44% 0.00% 4.43%
Return on invested capital 12.04% 10.82% 6.10%

Growth

Metric LNG TRGP Oil & Gas Midstream median
Revenue growth (TTM) 22.47% 4.67% 14.88%
EPS growth (last fiscal year) 69.93% 47.91% (7.78%)
Revenue growth, 5-year CAGR 16.38% 15.57% 10.05%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LNG TRGP Oil & Gas Midstream median
Debt to equity 2.00 5.01 0.77
Current ratio 0.90 0.74 1.19
Net debt to EBITDA 2.03 3.55 3.46

Dividend

Metric LNG TRGP Oil & Gas Midstream median
Dividend yield 0.79% 1.74% 4.94%
Payout ratio 0.15 0.42 0.73

Size

Metric LNG TRGP Oil & Gas Midstream median
Market cap 57.09b 58.29b 3.56b

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