WallStSmart

Hess Midstream Partners LP (HESM)vsTC Energy Corp (TRP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TC Energy Corp generates 850% more annual revenue ($15.48B vs $1.63B). HESM leads profitability with a 22.6% profit margin vs 22.2%. HESM appears more attractively valued with a PEG of 1.57. HESM earns a higher WallStSmart Score of 60/100 (C+).

HESM

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 9.0Value: 6.0Quality: 4.3
Piotroski: 1/9

TRP

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 3.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HESMUndervalued (+6.7%)

Margin of Safety

+6.7%

Fair Value

$39.02

Current Price

$38.17

$0.85 discount

UndervaluedFair: $39.02Overvalued
TRPSignificantly Overvalued (-33.9%)

Margin of Safety

-33.9%

Fair Value

$45.51

Current Price

$64.75

$19.24 premium

UndervaluedFair: $45.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HESM4 strengths · Avg: 9.3/10
Return on EquityProfitability
151.6%10/10

Every $100 of equity generates 152 in profit

Operating MarginProfitability
61.0%10/10

Strong operational efficiency at 61.0%

Profit MarginProfitability
22.6%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

TRP4 strengths · Avg: 9.0/10
Operating MarginProfitability
47.5%10/10

Strong operational efficiency at 47.5%

Market CapQuality
$67.82B9/10

Large-cap with strong market position

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B in free cash flow

Areas to Watch

HESM4 concerns · Avg: 4.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

EPS GrowthGrowth
4.8%4/10

4.8% earnings growth

TRP4 concerns · Avg: 2.5/10
P/E RatioValuation
26.1x4/10

Moderate valuation

PEG RatioValuation
3.372/10

Expensive relative to growth rate

EPS GrowthGrowth
-8.5%2/10

Earnings declined 8.5%

Altman Z-ScoreHealth
0.482/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HESM

The strongest argument for HESM centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.6% and operating margin at 61.0%.

Bull Case : TRP

The strongest argument for TRP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 47.5%.

Bear Case : HESM

The primary concerns for HESM are PEG Ratio, Price/Book, Revenue Growth.

Bear Case : TRP

The primary concerns for TRP are P/E Ratio, PEG Ratio, EPS Growth. Debt-to-equity of 2.23 is elevated, increasing financial risk.

Key Dynamics to Monitor

HESM profiles as a value stock while TRP is a mature play — different risk/reward profiles.

TRP carries more volatility with a beta of 0.97 — expect wider price swings.

TRP is growing revenue faster at 6.6% — sustainability is the question.

TRP generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

HESM scores higher overall (60/100 vs 55/100), backed by strong 22.6% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Hess Midstream Partners LP

ENERGY · OIL & GAS MIDSTREAM · USA

Hess Midstream LP owns, develops, operates and acquires midstream assets. The company is headquartered in Houston, Texas.

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TC Energy Corp

ENERGY · OIL & GAS MIDSTREAM · USA

TC Energy Corporation is an energy infrastructure company in North America. The company is headquartered in Calgary, Canada.

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