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 $84.7B against $60.6B — 1.4× the size. Targa Resources, Inc. trades at the lower P/E: 28.0× against 28.3×. 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 (2.91% vs 1.53%). 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 28.05 28.28 12.77
P/S 3.77 7.15 2.36
P/B 16.63 5.69 2.09
Price to free cash flow 85.22 n/m 9.71
EV/EBITDA 14.99 16.58 8.30
EV/Sales 4.93 9.62 3.88
Earnings yield 3.57% 3.54% 7.15%
Free cash flow yield 1.17% (0.25%) 6.86%

Profitability

Metric TRGP WMB Oil & Gas Midstream median
Gross margin 43.19% 82.83% 56.58%
Operating margin 22.91% 38.18% 34.18%
Net margin 13.47% 25.16% 22.50%
Free cash flow margin 4.43% (1.75%) 13.70%
Return on equity 69.32% 20.40% 14.65%
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% 15.60%
EPS growth (last fiscal year) 47.91% 17.58% (7.86%)
Revenue growth, 5-year CAGR 15.57% 9.13% 9.59%
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 1.53% 2.91% 4.54%
Payout ratio 0.43 0.83 0.76

Size

Metric TRGP WMB Oil & Gas Midstream median
Market cap 60.59b 84.67b 3.73b

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