KNOT Offshore Partners LP (KNOP)vsTarga Resources Inc (TRGP)
KNOP
KNOT Offshore Partners LP
$8.47
-3.09%
ENERGY · Cap: $354.51M
TRGP
Targa Resources Inc
$271.82
-4.62%
ENERGY · Cap: $67.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Targa Resources Inc generates 4355% more annual revenue ($16.74B vs $375.78M). TRGP leads profitability with a 13.6% profit margin vs 4.0%. TRGP appears more attractively valued with a PEG of 1.23. TRGP earns a higher WallStSmart Score of 64/100 (C+).
KNOP
Hold46
out of 100
Grade: D+
TRGP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.9%
Fair Value
$28.79
Current Price
$8.47
$20.32 discount
Intrinsic value data unavailable for TRGP.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
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
Smaller company, higher risk/reward
ROE of 3.0% — below average capital efficiency
4.0% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 15.9x book value
4.2% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : KNOP
The strongest argument for KNOP centers on Price/Book.
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 : KNOP
The primary concerns for KNOP are Market Cap, Return on Equity, Profit Margin. A P/E of 73.3x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.
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
TRGP carries more volatility with a beta of 0.80 — expect wider price swings.
KNOP is growing revenue faster at 7.2% — sustainability is the question.
TRGP generates stronger free cash flow (431M), providing more financial flexibility.
Monitor OIL & GAS MIDSTREAM industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TRGP scores higher overall (64/100 vs 46/100). KNOP offers better value entry with a 63.9% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
KNOT Offshore Partners LP
ENERGY · OIL & GAS MIDSTREAM · USA
KNOT Offshore Partners LP owns and operates tanker vessels under long-term charters in the North Sea and Brazil. The company is headquartered in Aberdeen, the United Kingdom.
Targa Resources Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Targa Resources Corp. The company is headquartered in Houston, Texas.
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