WallStSmart

Kinder Morgan Inc (KMI)vsWestern Midstream Partners LP (WES)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kinder Morgan Inc generates 333% more annual revenue ($17.52B vs $4.05B). WES leads profitability with a 29.5% profit margin vs 18.9%. KMI appears more attractively valued with a PEG of 3.68. KMI earns a higher WallStSmart Score of 68/100 (B-).

KMI

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 3.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.70

WES

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 9.0Value: 4.7Quality: 3.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMISignificantly Overvalued (-43.3%)

Margin of Safety

-43.3%

Fair Value

$21.84

Current Price

$31.71

$9.87 premium

UndervaluedFair: $21.84Overvalued
WESFair Value (-0.3%)

Margin of Safety

-0.3%

Fair Value

$42.30

Current Price

$44.37

$2.07 premium

UndervaluedFair: $42.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMI4 strengths · Avg: 8.3/10
Market CapQuality
$69.95B9/10

Large-cap with strong market position

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

EPS GrowthGrowth
36.0%8/10

Earnings expanding 36.0% YoY

WES5 strengths · Avg: 9.0/10
Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
41.1%10/10

Strong operational efficiency at 41.1%

Profit MarginProfitability
29.5%9/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
22.5%8/10

Revenue surging 22.5% year-over-year

Areas to Watch

KMI3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.023/10

Elevated debt levels

PEG RatioValuation
3.682/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.702/10

Distress zone — elevated risk

WES3 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.482/10

Expensive relative to growth rate

Debt/EquityHealth
2.591/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : KMI

The strongest argument for KMI centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 29.9%. Revenue growth of 13.8% demonstrates continued momentum.

Bull Case : WES

The strongest argument for WES centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 29.5% and operating margin at 41.1%. Revenue growth of 22.5% demonstrates continued momentum.

Bear Case : KMI

The primary concerns for KMI are Debt/Equity, PEG Ratio, Altman Z-Score.

Bear Case : WES

The primary concerns for WES are Piotroski F-Score, PEG Ratio, Debt/Equity. Debt-to-equity of 2.59 is elevated, increasing financial risk.

Key Dynamics to Monitor

KMI profiles as a mature stock while WES is a growth play — different risk/reward profiles.

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

WES is growing revenue faster at 22.5% — sustainability is the question.

KMI generates stronger free cash flow (687M), providing more financial flexibility.

Bottom Line

KMI scores higher overall (68/100 vs 63/100), backed by strong 18.9% margins and 13.8% revenue growth. 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.

Western Midstream Partners LP

ENERGY · OIL & GAS MIDSTREAM · USA

Western Midstream Partners, LP, acquires, owns, develops and operates midstream assets primarily in the United States.

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