WallStSmart

Kinder Morgan Inc (KMI)vsCheniere Energy Inc (LNG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cheniere Energy Inc generates 15% more annual revenue ($19.49B vs $16.94B). LNG leads profitability with a 27.4% profit margin vs 18.0%. KMI appears more attractively valued with a PEG of 3.86. LNG earns a higher WallStSmart Score of 72/100 (B).

KMI

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.3Quality: 4.5
Piotroski: 4/9

LNG

Strong Buy

72

out of 100

Grade: B

Growth: 6.0Profit: 9.5Value: 7.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMIUndervalued (+50.2%)

Margin of Safety

+50.2%

Fair Value

$63.18

Current Price

$32.84

$30.34 discount

UndervaluedFair: $63.18Overvalued
LNGUndervalued (+80.5%)

Margin of Safety

+80.5%

Fair Value

$1125.07

Current Price

$280.89

$844.18 discount

UndervaluedFair: $1125.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMI5 strengths · Avg: 8.6/10
Operating MarginProfitability
30.3%10/10

Strong operational efficiency at 30.3%

Market CapQuality
$73.06B9/10

Large-cap with strong market position

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
49.3%8/10

Earnings expanding 49.3% YoY

Free Cash FlowQuality
$1.58B8/10

Generating 1.6B in free cash flow

LNG6 strengths · Avg: 9.7/10
P/E RatioValuation
11.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
58.7%10/10

Every $100 of equity generates 59 in profit

Operating MarginProfitability
75.8%10/10

Strong operational efficiency at 75.8%

EPS GrowthGrowth
146.4%10/10

Earnings expanding 146.4% YoY

Market CapQuality
$60.46B9/10

Large-cap with strong market position

Profit MarginProfitability
27.4%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

KMI1 concerns · Avg: 2.0/10
PEG RatioValuation
3.862/10

Expensive relative to growth rate

LNG3 concerns · Avg: 2.3/10
Altman Z-ScoreHealth
1.574/10

Distress zone — elevated risk

PEG RatioValuation
9.462/10

Expensive relative to growth rate

Debt/EquityHealth
3.921/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : KMI

The strongest argument for KMI centers on Operating Margin, Market Cap, Price/Book. Profitability is solid with margins at 18.0% and operating margin at 30.3%. Revenue growth of 13.1% demonstrates continued momentum.

Bull Case : LNG

The strongest argument for LNG centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 27.4% and operating margin at 75.8%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : KMI

The primary concerns for KMI are PEG Ratio.

Bear Case : LNG

The primary concerns for LNG are Altman Z-Score, PEG Ratio, Debt/Equity. Debt-to-equity of 3.92 is elevated, increasing financial risk.

Key Dynamics to Monitor

KMI carries more volatility with a beta of 0.65 — expect wider price swings.

KMI is growing revenue faster at 13.1% — sustainability is the question.

KMI generates stronger free cash flow (1.6B), providing more financial flexibility.

Monitor OIL & GAS MIDSTREAM industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LNG scores higher overall (72/100 vs 64/100), backed by strong 27.4% margins and 12.3% revenue growth. KMI offers better value entry with a 50.2% margin of safety. Both earn "Strong 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.

Kinder Morgan Inc

ENERGY · OIL & GAS MIDSTREAM · USA

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals.

Cheniere Energy Inc

ENERGY · OIL & GAS MIDSTREAM · USA

Cheniere Energy, Inc., an energy infrastructure company, is involved in business related to liquefied natural gas (LNG) in the United States. The company is headquartered in Houston, Texas.

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