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 ($58.3B and $54.4B). ONEOK, Inc. trades at the lower P/E: 13.1× against 23.3×. ONEOK, Inc. grew revenue faster over the last twelve months: 36.8% against 4.67%. Targa Resources, Inc. has the higher net margin (13.4% vs 9.42%) and the lower return on invested capital (0.00% vs 6.30%). Both pay a dividend; ONEOK, Inc. yields more (5.03% vs 1.80%). Across the 23 metrics below, ONEOK, Inc. leads on 16 and Targa Resources, Inc. on 7.

Valuation

Metric OKE TRGP Oil & Gas Midstream median
P/E 13.09 23.33 11.80
P/S 1.24 3.12 2.38
P/B 1.65 14.94 1.65
Price to free cash flow 21.25 60.74 7.76
EV/EBITDA 10.69 13.03 7.88
EV/Sales 1.90 4.19 3.36
Earnings yield 7.64% 4.29% 7.98%
Free cash flow yield 4.71% 1.65% 7.23%

Profitability

Metric OKE TRGP Oil & Gas Midstream median
Gross margin 25.20% 41.82% 55.22%
Operating margin 14.17% 22.51% 35.83%
Net margin 9.42% 13.39% 20.12%
Free cash flow margin 5.85% 5.13% 14.43%
Return on equity 14.89% 71.68% 14.03%
Return on assets 5.77% 9.06% 4.62%
Return on invested capital 6.30% 0.00% 6.10%

Growth

Metric OKE TRGP Oil & Gas Midstream median
Revenue growth (TTM) 36.82% 4.67% 15.70%
EPS growth (last fiscal year) 4.84% 47.91% (7.78%)
Revenue growth, 5-year CAGR 31.53% 15.57% 10.05%
Net income growth, 5-year CAGR 40.87% 0.00% 0.00%

Health

Metric OKE TRGP Oil & Gas Midstream median
Debt to equity 0.88 5.01 0.77
Current ratio 0.84 0.74 1.16
Net debt to EBITDA 4.40 3.55 3.46

Dividend

Metric OKE TRGP Oil & Gas Midstream median
Dividend yield 5.03% 1.80% 5.03%
Payout ratio 0.66 0.42 0.73

Size

Metric OKE TRGP Oil & Gas Midstream median
Market cap 54.38b 58.29b 3.30b

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