MPLX LP (MPLX) vs Targa Resources, Inc. (TRGP)

MPLX LP and Targa Resources, Inc. are both Oil & Gas Midstream companies. MPLX LP and Targa Resources, Inc. are of similar size ($60.6B and $57.9B). MPLX LP trades at the lower P/E: 12.5× against 28.0×. MPLX LP grew revenue faster over the last twelve months: 8.71% against −1.97%. MPLX LP has the higher net margin (35.8% vs 13.5%) and the lower return on invested capital (9.45% vs 10.3%). Both pay a dividend; MPLX LP yields more (7.40% vs 1.95%). Across the 22 metrics below, MPLX LP leads on 16 and Targa Resources, Inc. on 6.

Valuation

Metric MPLX TRGP Oil & Gas Midstream median
P/E 12.51 28.05 12.77
P/S 4.47 3.77 2.36
P/B 4.14 16.63 2.09
Price to free cash flow 13.68 85.22 9.71
EV/EBITDA 11.41 14.99 8.30
EV/Sales 6.33 4.93 3.88
Earnings yield 8.00% 3.57% 7.15%
Free cash flow yield 7.31% 1.17% 6.86%

Profitability

Metric MPLX TRGP Oil & Gas Midstream median
Gross margin 59.69% 43.19% 56.58%
Operating margin 44.44% 22.91% 34.18%
Net margin 35.75% 13.47% 22.50%
Free cash flow margin 32.63% 4.43% 13.70%
Return on equity 33.41% 69.32% 14.65%
Return on assets 11.70% 8.67% 5.00%
Return on invested capital 9.45% 10.31% 6.13%

Growth

Metric MPLX TRGP Oil & Gas Midstream median
Revenue growth (TTM) 8.71% (1.97%) 15.60%
EPS growth (last fiscal year) 14.49% 47.91% (7.86%)
Revenue growth, 5-year CAGR 11.42% 15.57% 9.59%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MPLX TRGP Oil & Gas Midstream median
Debt to equity 1.80 5.16 0.78
Current ratio 0.89 0.77 1.19
Net debt to EBITDA 3.21 3.55 3.42

Dividend

Metric MPLX TRGP Oil & Gas Midstream median
Dividend yield 7.40% 1.95% 4.54%
Payout ratio 0.93 0.55 0.76

Size

Metric MPLX TRGP Oil & Gas Midstream median
Market cap 57.91b 60.59b 3.73b

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