Targa Resources, Inc. (TRGP) vs TC Energy Corporation (TRP)

Targa Resources, Inc. and TC Energy Corporation are both Oil & Gas Midstream companies. Targa Resources, Inc. and TC Energy Corporation are of similar size ($62.2B and $60.6B). TC Energy Corporation trades at the lower P/E: 25.6× against 28.0×. TC Energy Corporation grew revenue faster over the last twelve months: 24.0% against −1.97%. TC Energy Corporation has the higher net margin (22.2% vs 13.5%) and the lower return on invested capital (5.39% vs 10.3%). Both pay a dividend; TC Energy Corporation yields more (4.05% vs 1.53%). Across the 23 metrics below, TC Energy Corporation leads on 13 and Targa Resources, Inc. on 10.

Valuation

Metric TRGP TRP Oil & Gas Midstream median
P/E 28.05 25.62 12.77
P/S 3.77 5.67 2.36
P/B 16.63 2.53 2.09
Price to free cash flow 85.22 21.97 9.71
EV/EBITDA 14.99 13.23 8.30
EV/Sales 4.93 9.54 3.88
Earnings yield 3.57% 3.90% 7.15%
Free cash flow yield 1.17% 4.55% 6.86%

Profitability

Metric TRGP TRP Oil & Gas Midstream median
Gross margin 43.19% 70.44% 56.58%
Operating margin 22.91% 53.94% 34.18%
Net margin 13.47% 22.19% 22.50%
Free cash flow margin 4.43% 25.80% 13.70%
Return on equity 69.32% 9.94% 14.65%
Return on assets 8.67% 2.89% 5.00%
Return on invested capital 10.31% 5.39% 6.13%

Growth

Metric TRGP TRP Oil & Gas Midstream median
Revenue growth (TTM) (1.97%) 24.04% 15.60%
EPS growth (last fiscal year) 47.91% (27.55%) (7.86%)
Revenue growth, 5-year CAGR 15.57% 2.36% 9.59%
Net income growth, 5-year CAGR 0.00% (6.06%) 0.00%

Health

Metric TRGP TRP Oil & Gas Midstream median
Debt to equity 5.16 1.68 0.78
Current ratio 0.77 0.61 1.19
Net debt to EBITDA 3.55 5.43 3.42

Dividend

Metric TRGP TRP Oil & Gas Midstream median
Dividend yield 1.53% 4.05% 4.54%
Payout ratio 0.43 1.04 0.76

Size

Metric TRGP TRP Oil & Gas Midstream median
Market cap 60.59b 62.17b 3.73b

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