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 $86.1B against $60.7B — 1.4× the size. Targa Resources, Inc. trades at the lower P/E: 26.5× against 27.5×. Williams Companies, Inc. (The) grew revenue faster over the last twelve months: 8.72% against −1.97%. Williams Companies, Inc. (The) has the higher net margin (25.2% vs 13.5%) and the lower return on invested capital (6.40% vs 10.3%). Both pay a dividend; Williams Companies, Inc. (The) yields more (5.28% vs 2.27%). Across the 22 metrics below, Targa Resources, Inc. leads on 14 and Williams Companies, Inc. (The) on 8.

Valuation

Metric TRGP WMB Oil & Gas Midstream median
P/E 26.49 27.48 13.19
P/S 3.56 6.95 2.60
P/B 15.71 5.53 2.08
Price to free cash flow 80.48 n/m 10.14
EV/EBITDA 14.36 16.24 8.11
EV/Sales 4.72 9.41 3.89
Earnings yield 3.78% 3.64% 6.83%
Free cash flow yield 1.24% (0.25%) 6.94%

Profitability

Metric TRGP WMB Oil & Gas Midstream median
Gross margin 43.19% 82.83% 58.81%
Operating margin 22.91% 38.18% 32.14%
Net margin 13.47% 25.16% 21.16%
Free cash flow margin 4.43% (1.75%) 10.15%
Return on equity 69.32% 20.40% 11.30%
Return on assets 8.67% 5.26% 5.00%
Return on invested capital 10.31% 6.40% 6.13%

Growth

Metric TRGP WMB Oil & Gas Midstream median
Revenue growth (TTM) (1.97%) 8.72% 15.44%
EPS growth (last fiscal year) 47.91% 17.58% —
Revenue growth, 5-year CAGR 15.57% 9.13% 8.96%
Net income growth, 5-year CAGR 0.00% 65.91% 0.00%

Health

Metric TRGP WMB Oil & Gas Midstream median
Debt to equity 5.16 1.97 0.78
Current ratio 0.77 0.48 1.19
Net debt to EBITDA 3.55 4.31 3.42

Dividend

Metric TRGP WMB Oil & Gas Midstream median
Dividend yield 2.27% 5.28% 7.29%
Payout ratio — 0.78 0.64

Size

Metric TRGP WMB Oil & Gas Midstream median
Market cap 60.72b 86.11b 3.61b

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