Kinder Morgan Inc (KMI)vsTarga Resources Inc (TRGP)
KMI
Kinder Morgan Inc
$31.84
+1.69%
ENERGY · Cap: $68.66B
TRGP
Targa Resources Inc
$292.19
+2.50%
ENERGY · Cap: $62.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Kinder Morgan Inc generates 7% more annual revenue ($17.96B vs $16.74B). KMI leads profitability with a 19.3% profit margin vs 13.6%. TRGP appears more attractively valued with a PEG of 1.23. KMI earns a higher WallStSmart Score of 68/100 (B-).
KMI
Strong Buy68
out of 100
Grade: B-
TRGP
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-41.1%
Fair Value
$22.56
Current Price
$31.84
$9.28 premium
Intrinsic value data unavailable for TRGP.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 30.1%
Large-cap with strong market position
Reasonable price relative to book value
Earnings expanding 21.2% YoY
Every $100 of equity generates 62 in profit
Large-cap with strong market position
Strong operational efficiency at 27.8%
Earnings expanding 23.3% YoY
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Moderate valuation
Trading at 20.0x book value
4.2% revenue growth
Distress zone — elevated risk
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 19.3% and operating margin at 30.1%. Revenue growth of 10.8% demonstrates continued momentum.
Bull Case : TRGP
The strongest argument for TRGP centers on Return on Equity, Market Cap, Operating Margin. PEG of 1.23 suggests the stock is reasonably priced for its growth.
Bear Case : KMI
The primary concerns for KMI are Debt/Equity, PEG Ratio, Altman Z-Score.
Bear Case : TRGP
The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 5.51 is elevated, increasing financial risk.
Key Dynamics to Monitor
KMI profiles as a mature stock while TRGP is a value play — different risk/reward profiles.
TRGP carries more volatility with a beta of 0.72 — expect wider price swings.
KMI is growing revenue faster at 10.8% — sustainability is the question.
KMI generates stronger free cash flow (978M), providing more financial flexibility.
Bottom Line
KMI scores higher overall (68/100 vs 66/100), backed by strong 19.3% margins and 10.8% revenue growth. Both earn "Strong Buy" and "Strong 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.
Targa Resources Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Targa Resources Corp. The company is headquartered in Houston, Texas.
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