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

Targa Resources, Inc. and TC Energy Corporation are both Oil & Gas Midstream companies. TC Energy Corporation is the larger, with a market value of $65.2B against $58.3B — 1.1× the size. Targa Resources, Inc. trades at the lower P/E: 24.1× against 26.0×. TC Energy Corporation grew revenue faster over the last twelve months: 24.0% against 4.67%. TC Energy Corporation has the higher net margin (22.2% vs 0.00%) and the lower return on invested capital (5.39% vs 10.8%). Both pay a dividend; TC Energy Corporation yields more (3.99% vs 1.74%). 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 24.11 26.02 11.68
P/S 3.22 5.76 2.39
P/B 14.79 2.57 1.68
Price to free cash flow 62.74 22.32 8.52
EV/EBITDA 13.40 13.36 9.03
EV/Sales 4.30 9.63 3.43
Earnings yield 4.15% 3.84% 7.78%
Free cash flow yield 1.59% 4.48% 7.11%

Profitability

Metric TRGP TRP Oil & Gas Midstream median
Gross margin 41.82% 70.44% 54.87%
Operating margin 22.51% 53.94% 34.73%
Net margin 0.00% 22.19% 20.12%
Free cash flow margin 5.13% 25.80% 14.43%
Return on equity 0.00% 9.94% 11.73%
Return on assets 0.00% 2.89% 4.43%
Return on invested capital 10.82% 5.39% 6.10%

Growth

Metric TRGP TRP Oil & Gas Midstream median
Revenue growth (TTM) 4.67% 24.04% 14.88%
EPS growth (last fiscal year) 47.91% (27.55%) (7.78%)
Revenue growth, 5-year CAGR 15.57% 2.36% 10.05%
Net income growth, 5-year CAGR 0.00% (6.06%) 0.00%

Health

Metric TRGP TRP Oil & Gas Midstream median
Debt to equity 5.01 1.68 0.77
Current ratio 0.74 0.61 1.19
Net debt to EBITDA 3.55 5.43 3.46

Dividend

Metric TRGP TRP Oil & Gas Midstream median
Dividend yield 1.74% 3.99% 4.94%
Payout ratio 0.42 1.04 0.73

Size

Metric TRGP TRP Oil & Gas Midstream median
Market cap 58.29b 65.20b 3.56b

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