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 ($60.7B and $58.8B). MPLX LP trades at the lower P/E: 12.2× against 26.5×. 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 (9.32% vs 2.27%). 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 12.22 26.49 13.19
P/S 4.36 3.56 2.60
P/B 4.05 15.71 2.08
Price to free cash flow 13.36 80.48 10.14
EV/EBITDA 11.22 14.36 8.11
EV/Sales 6.22 4.72 3.89
Earnings yield 8.19% 3.78% 6.83%
Free cash flow yield 7.48% 1.24% 6.94%

Profitability

Metric MPLX TRGP Oil & Gas Midstream median
Gross margin 59.69% 43.19% 58.81%
Operating margin 44.44% 22.91% 32.14%
Net margin 35.75% 13.47% 21.16%
Free cash flow margin 32.63% 4.43% 10.15%
Return on equity 33.41% 69.32% 11.30%
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%) 15.44%
EPS growth (last fiscal year) 14.49% 47.91% —
Revenue growth, 5-year CAGR 11.42% 15.57% 8.96%
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 9.32% 2.27% 7.29%
Payout ratio — — 0.64

Size

Metric MPLX TRGP Oil & Gas Midstream median
Market cap 58.78b 60.72b 3.61b

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