Targa Resources, Inc. (TRGP) vs Williams Companies, Inc. (The) (WMB)

Targa Resources, Inc. and Williams Companies, Inc. (The) are both Oil & Gas Midstream companies. Williams Companies, Inc. (The) is the larger, with a market value of $80.3B against $58.3B — 1.4× the size. Targa Resources, Inc. trades at the lower P/E: 24.1× against 24.7×. Williams Companies, Inc. (The) grew revenue faster over the last twelve months: 8.78% against 4.67%. Williams Companies, Inc. (The) has the higher net margin (25.0% vs 0.00%) and the lower return on invested capital (5.46% vs 10.8%). Both pay a dividend; Williams Companies, Inc. (The) yields more (3.21% vs 1.74%). Across the 22 metrics below, Targa Resources, Inc. leads on 11 and Williams Companies, Inc. (The) on 11.

Valuation

Metric TRGP WMB Oil & Gas Midstream median
P/E 24.11 24.74 11.68
P/S 3.22 6.39 2.39
P/B 14.79 3.73 1.68
Price to free cash flow 62.74 n/m 8.52
EV/EBITDA 13.40 15.65 9.03
EV/Sales 4.30 8.97 3.43
Earnings yield 4.15% 4.04% 7.78%
Free cash flow yield 1.59% (1.60%) 7.11%

Profitability

Metric TRGP WMB Oil & Gas Midstream median
Gross margin 41.82% 82.06% 54.87%
Operating margin 22.51% 37.48% 34.73%
Net margin 0.00% 24.98% 20.12%
Free cash flow margin 5.13% (10.23%) 14.43%
Return on equity 0.00% 17.21% 11.73%
Return on assets 0.00% 4.94% 4.43%
Return on invested capital 10.82% 5.46% 6.10%

Growth

Metric TRGP WMB Oil & Gas Midstream median
Revenue growth (TTM) 4.67% 8.78% 14.88%
EPS growth (last fiscal year) 47.91% 17.58% (7.78%)
Revenue growth, 5-year CAGR 15.57% 9.13% 10.05%
Net income growth, 5-year CAGR 0.00% 65.91% 0.00%

Health

Metric TRGP WMB Oil & Gas Midstream median
Debt to equity 5.01 1.58 0.77
Current ratio 0.74 0.75 1.19
Net debt to EBITDA 3.55 4.31 3.46

Dividend

Metric TRGP WMB Oil & Gas Midstream median
Dividend yield 1.74% 3.21% 4.94%
Payout ratio 0.42 0.80 0.73

Size

Metric TRGP WMB Oil & Gas Midstream median
Market cap 58.29b 80.33b 3.56b

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