WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kinder Morgan Inc generates 341% more annual revenue ($16.94B vs $3.84B). WES leads profitability with a 30.0% profit margin vs 18.0%. KMI appears more attractively valued with a PEG of 3.86. KMI earns a higher WallStSmart Score of 64/100 (C+).

KMI

Buy

64

out of 100

Grade: C+

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

WES

Buy

57

out of 100

Grade: C

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMIUndervalued (+51.0%)

Margin of Safety

+51.0%

Fair Value

$64.12

Current Price

$33.98

$30.14 discount

UndervaluedFair: $64.12Overvalued
WESSignificantly Overvalued (-109.5%)

Margin of Safety

-109.5%

Fair Value

$20.26

Current Price

$42.01

$21.75 premium

UndervaluedFair: $20.26Overvalued

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
$75.49B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

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

WES4 strengths · Avg: 9.0/10
Return on EquityProfitability
32.2%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
30.0%10/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
14.2x8/10

Attractively priced relative to earnings

Operating MarginProfitability
28.1%8/10

Strong operational efficiency at 28.1%

Areas to Watch

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

Expensive relative to growth rate

WES4 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

EPS GrowthGrowth
-45.2%2/10

Earnings declined 45.2%

Debt/EquityHealth
2.221/10

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 : WES

The strongest argument for WES centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 30.0% and operating margin at 28.1%. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : KMI

The primary concerns for KMI are PEG Ratio.

Bear Case : WES

The primary concerns for WES are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.22 is elevated, increasing financial risk.

Key Dynamics to Monitor

WES carries more volatility with a beta of 0.71 — 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

KMI scores higher overall (64/100 vs 57/100), 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.

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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