Kinder Morgan Inc (KMI)vsPermian Basin Royalty Trust (PBT)
KMI
Kinder Morgan Inc
$33.98
+0.15%
ENERGY · Cap: $75.49B
PBT
Permian Basin Royalty Trust
$22.02
-2.31%
ENERGY · Cap: $979.25M
Smart Verdict
WallStSmart Research — data-driven comparison
Kinder Morgan Inc generates 97992% more annual revenue ($16.94B vs $17.27M). PBT leads profitability with a 88.5% profit margin vs 18.0%. PBT appears more attractively valued with a PEG of 1.12. KMI earns a higher WallStSmart Score of 64/100 (C+).
KMI
Buy64
out of 100
Grade: C+
PBT
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.0%
Fair Value
$64.12
Current Price
$33.98
$30.14 discount
Margin of Safety
-755.4%
Fair Value
$2.24
Current Price
$22.02
$19.78 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 30.3%
Large-cap with strong market position
Reasonable price relative to book value
Earnings expanding 49.3% YoY
Generating 1.6B in free cash flow
Every $100 of equity generates 88 in profit
Keeps 89 of every $100 in revenue as profit
Strong operational efficiency at 94.3%
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
Premium valuation, high expectations priced in
Revenue declined 13.6%
Earnings declined 14.8%
Comparative Analysis Report
WallStSmart ResearchBull 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 : PBT
The strongest argument for PBT centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 88.5% and operating margin at 94.3%. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bear Case : KMI
The primary concerns for KMI are PEG Ratio.
Bear Case : PBT
The primary concerns for PBT are Market Cap, P/E Ratio, Revenue Growth. A P/E of 63.7x leaves little room for execution misses.
Key Dynamics to Monitor
KMI profiles as a mature stock while PBT is a declining play — different risk/reward profiles.
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.
Bottom Line
KMI scores higher overall (64/100 vs 51/100), backed by strong 18.0% margins and 13.1% revenue growth. 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.
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.
Permian Basin Royalty Trust
ENERGY · OIL & GAS MIDSTREAM · USA
The Permian Basin Royalty Trust, an express trust, holds primary royalty interests in various oil and gas properties in the United States. The company is headquartered in Dallas, Texas.
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