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 ($60.7B and $59.7B). TC Energy Corporation trades at the lower P/E: 24.4× against 26.5×. 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 (7.37% vs 2.27%). 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 26.49 24.39 13.19
P/S 3.56 5.40 2.60
P/B 15.71 2.41 2.08
Price to free cash flow 80.48 20.92 10.14
EV/EBITDA 14.36 12.86 8.11
EV/Sales 4.72 9.27 3.89
Earnings yield 3.78% 4.10% 6.83%
Free cash flow yield 1.24% 4.78% 6.94%

Profitability

Metric TRGP TRP Oil & Gas Midstream median
Gross margin 43.19% 70.44% 58.81%
Operating margin 22.91% 53.94% 32.14%
Net margin 13.47% 22.19% 21.16%
Free cash flow margin 4.43% 25.80% 10.15%
Return on equity 69.32% 9.94% 11.30%
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% 15.44%
EPS growth (last fiscal year) 47.91% (27.55%) —
Revenue growth, 5-year CAGR 15.57% 2.36% 8.96%
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 2.27% 7.37% 7.29%
Payout ratio — 4.07 0.64

Size

Metric TRGP TRP Oil & Gas Midstream median
Market cap 60.72b 59.65b 3.61b

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