Kinder Morgan Inc (KMI)vsTarga Resources Inc (TRGP)
KMI
Kinder Morgan Inc
$33.98
+0.15%
ENERGY · Cap: $75.49B
TRGP
Targa Resources Inc
$245.46
-0.26%
ENERGY · Cap: $52.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Targa Resources Inc generates 1% more annual revenue ($17.03B vs $16.94B). KMI leads profitability with a 18.0% profit margin vs 11.3%. TRGP appears more attractively valued with a PEG of 1.23. TRGP earns a higher WallStSmart Score of 66/100 (B-).
KMI
Buy64
out of 100
Grade: C+
TRGP
Strong Buy66
out of 100
Grade: B-
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
+44.1%
Fair Value
$397.33
Current Price
$245.46
$151.87 discount
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 51 in profit
Earnings expanding 74.5% YoY
Large-cap with strong market position
Strong operational efficiency at 22.6%
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 17.2x book value
Revenue declined 7.9%
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 18.0% and operating margin at 30.3%. Revenue growth of 13.1% demonstrates continued momentum.
Bull Case : TRGP
The strongest argument for TRGP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.23 suggests the stock is reasonably priced for its growth.
Bear Case : KMI
The primary concerns for KMI are PEG Ratio.
Bear Case : TRGP
The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
KMI profiles as a mature stock while TRGP is a declining play — different risk/reward profiles.
TRGP carries more volatility with a beta of 0.85 — 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
TRGP scores higher overall (66/100 vs 64/100). KMI offers better value entry with a 51.0% 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.
Targa Resources Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Targa Resources Corp. The company is headquartered in Houston, Texas.
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