ONEOK, Inc. (OKE) vs Targa Resources, Inc. (TRGP)

ONEOK, Inc. and Targa Resources, Inc. are both Oil & Gas Midstream companies. ONEOK, Inc. and Targa Resources, Inc. are of similar size ($60.7B and $57.5B). ONEOK, Inc. trades at the lower P/E: 15.3× against 26.5×. ONEOK, Inc. grew revenue faster over the last twelve months: 40.8% against −1.97%. Targa Resources, Inc. has the higher net margin (13.5% vs 9.29%) and the higher return on invested capital (10.3% vs 7.02%). Both pay a dividend; ONEOK, Inc. yields more (5.56% vs 2.27%). Across the 23 metrics below, ONEOK, Inc. leads on 14 and Targa Resources, Inc. on 9.

Valuation

Metric OKE TRGP Oil & Gas Midstream median
P/E 15.31 26.49 13.19
P/S 1.42 3.56 2.60
P/B 2.43 15.71 2.08
Price to free cash flow 19.28 80.48 10.14
EV/EBITDA 11.44 14.36 8.11
EV/Sales 2.22 4.72 3.89
Earnings yield 6.53% 3.78% 6.83%
Free cash flow yield 5.19% 1.24% 6.94%

Profitability

Metric OKE TRGP Oil & Gas Midstream median
Gross margin 27.21% 43.19% 58.81%
Operating margin 15.52% 22.91% 32.14%
Net margin 9.29% 13.47% 21.16%
Free cash flow margin 7.38% 4.43% 10.15%
Return on equity 16.27% 69.32% 11.30%
Return on assets 5.49% 8.67% 5.00%
Return on invested capital 7.02% 10.31% 6.13%

Growth

Metric OKE TRGP Oil & Gas Midstream median
Revenue growth (TTM) 40.83% (1.97%) 15.44%
EPS growth (last fiscal year) 4.84% 47.91% —
Revenue growth, 5-year CAGR 31.53% 15.57% 8.96%
Net income growth, 5-year CAGR 40.87% 0.00% 0.00%

Health

Metric OKE TRGP Oil & Gas Midstream median
Debt to equity 1.37 5.16 0.78
Current ratio 0.74 0.77 1.19
Net debt to EBITDA 4.40 3.55 3.42

Dividend

Metric OKE TRGP Oil & Gas Midstream median
Dividend yield 5.56% 2.27% 7.29%
Payout ratio 0.70 — 0.64

Size

Metric OKE TRGP Oil & Gas Midstream median
Market cap 57.48b 60.72b 3.61b

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