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 ($60.6B and $57.2B). ONEOK, Inc. trades at the lower P/E: 16.1× against 28.0×. 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 (4.54% vs 1.53%). 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 16.10 28.05 12.77
P/S 1.50 3.77 2.36
P/B 2.56 16.63 2.09
Price to free cash flow 20.28 85.22 9.71
EV/EBITDA 11.81 14.99 8.30
EV/Sales 2.29 4.93 3.88
Earnings yield 6.21% 3.57% 7.15%
Free cash flow yield 4.93% 1.17% 6.86%

Profitability

Metric OKE TRGP Oil & Gas Midstream median
Gross margin 27.21% 43.19% 56.58%
Operating margin 15.52% 22.91% 34.18%
Net margin 9.29% 13.47% 22.50%
Free cash flow margin 7.38% 4.43% 13.70%
Return on equity 16.27% 69.32% 14.65%
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%) 15.60%
EPS growth (last fiscal year) 4.84% 47.91% (7.86%)
Revenue growth, 5-year CAGR 31.53% 15.57% 9.59%
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 4.54% 1.53% 4.54%
Payout ratio 0.73 0.43 0.76

Size

Metric OKE TRGP Oil & Gas Midstream median
Market cap 57.15b 60.59b 3.73b

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